A. Some products are produced that would not otherwise be produced
B. Producer surplus increases
C. Consumer surplus decreases
D. Firm’s profits increase
Related Mcqs:
- If goods are exported for less than society’s marginal production cost and the marginal benefit to domestic consumers, it is likely that they benefit from?
A. an import subsidy
B. a quota
C. comparative advantage
D. an export subsidy - Market price adjusted to consider differences between social cost-benefit and private cost-benefit calculations are ?
A. price distortions
B. consumer surplus
C. shadow prices
D. exchange rates - When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
A. less than the efficient level of output
B. more than the efficient level of output
C. so that consumer surplus is zero
D. the efficient level of output - In price discrimination, which section of the market is charged the higher price ?
A. The section with the richest people
B. The section with the oldest people
C. The section with the most inelastic demand
D. The section with the most elastic demand - Suppose that the world price of tin is above the target (ceiling) price that is defined by an international commodity agreement. To move the world price toward the target price, a buffer stock agreement would require its buffer stock manager to ____ tin and an export quota agreement would require that member countries _________ their export of tin?
A. purchase; decrease
B. purchase; increase
C. sell; increase
D. sell; decrease - Marketers are sometimes accused of deceptive practices that lead consumers to believe they will get more value than they actually do. _____ includes practices such as falsely advertising factory of wholesale prices or a large price reduction from a phony high retail price ?
A. Deceptive promotion
B. Deceptive packaging
C. Deceptive pricing
D. Deceptive cost structure - Which best describes price discrimination ?
A. Charging different prices for different products
B. Charging the same prices for different products
C. Charging the same prices for same products
D. Charging different prices for the same products - In Price discrimination abnormal profits are made if ?
A. Average revenue is greater than average variable cost
B. Average revenue is greater than average cost
C. Average revenue is greater than marginal revenue
D. Average revenue is greater than average fixed cost - In perfect price discrimination ?
A. Consumer surplus is maximised
B. produce surplus is zero
C. Community surplus is maximised
D. Consumer surplus is zero - In perfect price discrimination ?
A. The demand curve is the marginal cost curve
B. The average revenue equals the average cost
C. The marginal cost is the average cost curve
D. The demand curve is the marginal revenue
