The principle that consumers and firms optimize
A) is not helpful because some economic agents may behave irrationally.
B) is helpful because it allows us to analyze how economic agents respond to changes in their environment.
C) only applies to perfectly competitive markets.
D) is helpful because it determines the available technology.
B
Economics
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When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have
A) monopoly pricing. B) marginal cost pricing. C) price discrimination. D) price differentiation.
Economics
If the interest rate is 10 percent, what is the present value of an asset that yields an annual return of $10,000?
a. $1,000 b. $10,000 c. $1,000,000 d. $100,000 e. not enough information to determine
Economics