Which of the following is true of perfect price discrimination compared to charging a single price?
a. Output is greater.
b. Output is the same, but profit is higher.
c. Output is lower, but profit is higher.
d. Output is lower, and profit could be higher or lower.
e. Output is the same, but profit is lower.
A
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According to this Application, based on the analysis of the sources of growth in China and India, and assuming that nothing changes, it can be concluded that
A) there is convergence between the nations in Asia. B) China's reliance on technology for economic growth makes it less likely to keep pace with the growth rate in India. C) India's long-term growth prospects are not as strong those for China. D) the growth rate in China should significantly slow down in the near future, but the growth rate in India will continue to rapidly increase in the near and distant future.
Refer to Figure 5-3. The private profit-maximizing output level is
A) Qm. B) Qo. C) Qo - Qm. D) Qn.