A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it.
Indicate whether the statement is true or false
Ques. 2One of the ways the market for used cars copes with the problems associated with private information is through the offering of
A) leases.
B) warranties.
C) low interest rates.
D) low prices.
Ques. 3Compared to a single-price monopolist, a price-discriminating monopolist
A) produces more output.
B) produces the same amount of output but charges a higher price.
C) generates a larger deadweight loss.
D) produces less output but charges a lower price.
Ques. 4Customer discrimination against female realtors ________ the number of female realtors and ________ their perceived value of marginal product.
A) decreases; decreases
B) decreases; increases
C) increases; decreases
D) increases; increases
Ques. 5Julie's demand curve for video downloads is downward sloping because as the price of a download decreases, ________ and she watches ________ videos.
A) the slope of her budget line changes; fewer
B) her budget line shifts inward; fewer
C) the slope of her budget line changes; more
D) her budget line shifts outward; more
Ques. 6To maximize utility, why does a consumer consume the combination of goods that equates marginal utility per dollar on the different goods rather than just equating the marginal utility of the different goods?
What will be an ideal response?
Quick Reply
