Price discrimination is more common in service industries because:
A. Low price buyers will find it virtually impossible to resell the products of such industries to high price buyers
B. The costs of providing such industries' products to different groups of buyers vary dramatically
C. The price elasticity of demand is the same for all groups of buyers in these industries
D. All firms in these industries have significant monopoly power over price
A. Low price buyers will find it virtually impossible to resell the products of such industries to high price buyers
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Which of the following would not be considered a positive addition to household wealth?
A) a credit card balance B) the balance in your checking account C) 1,000 shares of Microsoft stock D) the equity in one's home
The concept of absolute advantage relies on
A) the idea of comparative advantage. B) the ability to produce more units of an item with a given amount of resources. C) the idea of opportunity cost. D) the concept of economic efficiency as measured on the production possibility curve.