Suppose that a price-discriminating monopolist divides its market into two segments. In each market segment, price is determined by finding the level of output where that market's
a. average revenue equals average total cost
b. average revenue equals average variable cost
c. marginal revenue equals average total cost
d. marginal revenue equals marginal cost
e. marginal cost equals average total cost
D
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Suppose that in 2016, real GDP grew in Estonia by 3% and the population increased by 5%. Therefore, in 2016, Estonia experienced
A) economic growth and an increase in living standards. B) no economic growth, but an increase in living standards. C) no economic growth and no increase in living standards. D) economic growth, but not an increase in living standards.
The government is pursuing an expansionary policy if it:
a. decreases its spending and increases its tax revenues. b. increases its spending or increases its tax revenues. c. decreases its spending or reduces its tax revenues. d. increases its spending and/or reduces its tax revenues.