Which of the following conditions is not necessary for a firm to be able to engage in price discrimination?
I. The firm must be able to produce to the point at which price equals marginal revenue.
II. The firm must easily be able to identify consumers with different demand elasticities.
III. The firm must be able to prevent resale of the item it produces and sells.
A) I only
B) III only
C) Both I and II only
D) Both II and III only
D
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Nations get significant advantages if they have a single, valuable, natural resource, with little downside risk
Indicate whether the statement is true or false
Which of the following will occur in a small country with a high marginal propensity to import?
A) Changes in government spending will cause large changes in output. B) Changes in government spending will cause large changes in the trade balance. C) A depreciation will cause only small changes in the trade balance. D) There is no combination of policies that can eliminate the trade deficit. E) all of the above