question archive Please give the answer and explanations about 2 questions below, many thanks!! 1
Please give the answer and explanations about 2 questions below, many thanks!! 1
Subject:BusinessPrice: Bought3
Please give the answer and explanations about 2 questions below, many thanks!!
1. An effective price floor (minimum price) causes a loss of
(a) consumer surplus only.
(b) producer surplus only.
(c) consumer surplus for certain and possibly producer surplus as well.
(d) producer surplus for certain and possibly consumer surplus as well.
(e) neither producer nor consumer surplus.
2. Your firm produces stereo components for sale in two markets, foreign and domestic, and the two groups of consumers cannot trade with one another. If your firm practices third-degree price discrimination to maximize profits, the marginal revenue
(a) in the foreign market will equal the marginal cost.
(b) in the domestic market will equal the marginal cost.
(c) in the domestic market will equal the marginal revenue in the domestic market.
(d) all of the above
(e) none of the above
