A group price discriminator sells its product in Florida for three times the price it sets in New York
Assuming the firm faces the same constant marginal cost in each market and the price elasticity of demand in New York is -2.0, the demand in Florida
A) has an elasticity of -6.0.
B) is more price elastic than the demand in New York.
C) has an elasticity of -1.2.
D) has an elasticity of -0.67.
C
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Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks to make sure their underwriting standards meet strict standards. b. Their mandate is to develop a secondary market in U.S. mortgages. c. Their mandate is to develop a secondary market in global mortgage markets. d. Their mandate is to develop a primary market in the U.S. mortgage market. e. None of the above.
You accidentally run into your next door neighbor's fence and destroy it. Your neighbor sues you and you are required to pay $1,000 to repair the fence. This is an example of
A. the Coase theorem. B. a liability rule. C. the free-rider problem. D. an injunction.