With perfect price discrimination the monopoly
a. eliminates all price discrimination by charging each customer the same price.
b. charges each customer an amount equal to the monopolist's marginal cost of production.
c. eliminates deadweight loss.
d. eliminates profits and increases consumer surplus.
c
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The circular flow diagram shows that
A) households spend all their income on goods and services. B) the value of total income is equal to the total value of expenditures on final goods and services. C) firms pay households wages, and households receive transfer payments from firms. D) GDP will be less than the total value of expenditures on final goods and services in the economy.
An economic variable that moves in the same direction as aggregate economic activity (up in expansions, down in contractions) is called
A) procyclical. B) countercyclical. C) acyclical. D) a leading variable.