Second-degree price discrimination occurs when:
A) each consumer is charged exactly their willingness to pay.
B) different groups of consumers are charged different prices.
C) consumers are charged different prices at different points of time.
D) consumers are charged different prices based on characteristics of their purchase.
D
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What is the real exchange rate between the dollar and the euro equal to?
What will be an ideal response?
The owners of sports franchises often complain that free-agency (open bidding for player services) threatens their profitability and thus their long-run viability. Given your knowledge of perfect competition, which of the following is correct?
A) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players equal zero. B) Team owners might be correct in as much as free-agency bids up the price of players so that economic profits from those players is negative. C) Team owners are lying, as free-agent salaries are still much too low. D) Team owners are telling the truth, as free-agent salaries are much too high.