Refer to Figure 16-3. Suppose Chantal practices price discrimination. Which of the following statements is true?
A) By charging different prices in markets A and B, Chantal can transfer some producer surplus into economic profit.
B) Chantal's profits will be higher if she has uniform pricing instead of different prices for different groups of customers.
C) By charging a higher price in market B, Chantal has transferred some of the consumer surplus from customers in market B to customers in market A.
D) By charging a higher price in market B, Chantal can convert some consumer surplus into economic profit.
D
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In a perfectly competitive industry, an individual firm faces
A) a perfectly inelastic labor supply curve. B) a perfectly vertical labor supply curve. C) a perfectly elastic labor supply curve. D) none of the above.
As the economy expands, tax revenues
A. rise and transfer payments rise, causing the economy to expand by more than it would in the absence of automatic stabilizers. B. fall and transfer payments rise, causing the economy to expand by less than it would in the absence of automatic stabilizers. C. rise and transfer payments fall, causing the economy to expand by less than it would in the absence of automatic stabilizers. D. fall and transfer payments fall, causing the economy to expand by more than it would in the absence of automatic stabilizers.