Justin is trying to decide whether he wants to spend a $50 birthday check on a new DVD player or tickets to a concert. If he chooses the DVD player, what is the opportunity cost of this decision?

Answer the following statements true (T) or false (F)

1. One of the economic effects of monopoly is an income transfer from consumers to the firm. 2. Price discrimination is not viable if consumers can resell the products they purchase. 3. In most cases, a monopolist practicing price discrimination will end up earning less economic profits than a non-discriminating monopolist. 4. A price-discriminating monopolist will set a higher price where demand is more elastic and a lower price where demand is less elastic. 5. In a natural monopoly case, the socially-optimal pricing policy rule will often yield a higher price than the fair-return pricing rule.

The prices of most services have risen much faster than inflation in recent years because

A. wages and salaries of service providers have risen much faster than inflation. B. wages and salaries of service providers have risen, but their productivity has not. C. the productivity of service providers has risen dramatically. D. the demand for services has risen.