If there were no usury law, the interest rate would be _____%.

Refer to Figure 13-7. Which of the following statements describes the best course of action for the firm depicted in the diagram?

A) The firm should exit the industry because its price is less than its average total cost. B) The firm should minimize its losses by producing Qy units and charging a price of P0. C) The firm should minimize its losses by producing Qy units and charging a price of P1. D) The firm should minimize its losses by producing Qy units and charging a price of P2.

One of the necessary conditions for price discrimination to occur is that:

a. buyers in different markets have different elasticities of demand. b. the demand curve is upward sloping. c. buyers must be allowed to resell the good at a higher price elsewhere. d. all of these are necessary for price discrimination to occur.