A firm practicing group price discrimination across two countries sets MR = common MC and therefore
A) price will be the same in both countries.
B) price will be twice MR.
C) profit will be the same in both countries.
D) price will likely be different in each country.
D
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Refer to Figure 8A.1. Suppose that the economy starts with a capital stock of K0. Then total saving is given by point ________ and depreciation by point ________
A) c; d B) b; a C) d; c D) a; b
A public good such as a streetlight will not be provided by a private profit-seeking company because
a. the streetlight is also a merit good b. the streetlight is an exclusive and rival good c. it takes a government to maintain the streetlights, e.g., changing bulbs d. private companies can't compete with government in producing streetlights e. the benefit a person derives from having streetlights are less than the cost of installing streetlights