Depreciation or consumption of fixed capital measures:
A. the decline in the value of inventories caused by inflation.
B. the loss of productive ability due to capital intensive production.
C. capital that is wasted in the production process.
D. the value of existing capital stock used up in the production process.
Answer: D
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Which of the below is true? a. A price ceiling reduces the quantity exchanged on the market, but a price floor increases the quantity exchanged on the market. b. A price ceiling increases the quantity exchanged on the market, but a price floor decreases the quantity exchanged on the market. c. Both price floors and price ceilings reduce the quantity exchanged in the market
d. Both price floors and price ceilings increase the quantity exchanged in the market.
A monopolist that practices perfect price discrimination
a. creates no deadweight loss. b. charges one group of buyers a higher price than another group, such as offering a student discount. c. charges a higher price but produces the same monopoly level of output as when a single price is charged. d. charges some customers a price below marginal cost because costs are covered by the high-priced buyers.