Compared to setting a single price, if a firm can price discriminate it
A) makes a larger economic profit.
B) makes a lower economic profit.
C) makes zero economic profit.
D) has no change in its economic profit from when it set a single price.
E) might increase, decrease, or not change its economic profit depending on whether as a single-price monopoly its marginal revenue curve was above, below, or the same as its demand curve.
A
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Bank One has reserves of $100,000, government securities of $200,000, loans of $700,000, and checkable deposits of $800,000. If the desired reserve ratio is 10 percent, Bank One can make additional loans totaling
A) $0.00. B) $10,000. C) $20,000. D) $80,000. E) $100,000.
The Friedman—Phelps analysis suggests that there is a long-term relationship between
A) inflation and unemployment. B) cyclical inflation and structural unemployment. C) unanticipated inflation and cyclical unemployment. D) anticipated inflation and structural unemployment.