Author Question: All firms can increase profits using price discrimination. A) True, because market demand curves ... (Read 37 times)

fox · **on:** Jul 1, 2018

All firms can increase profits using price discrimination.

A) True, because market demand curves are downward sloping
B) True, because firms can sell different versions of a product that is just right for an individual consumer
C) False, because consumers aren't forced to buy a firm's products
D) False, because some firms are in competitive markets

Question 2

Suppose the short-run production function is q = L0.5. If the marginal cost of producing the tenth unit is 5, what is the wage per unit of labor?

A) 1
B) 0.5
C) 0.25
D) It cannot be determined without more information.