First degree price discrimination is efficient and therefore preferred by everyone to no price discrimination on the part of a monopolist.
Answer the following statement true (T) or false (F)
False
Rationale: It is indeed efficient, but consumers lose all surplus to the monopolist. So only the monopolist prefers it.
Economics
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The level of potential output in the United States increases as the
A) supply of labor decreases. B) demand for labor decreases. C) supply of labor increases. D) stock of capital decreases.
Economics
If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP, then
A) the MPC is 0.5. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 0.9.
Economics