Suppose Johnny, seven years old, is selling lemonade and he sells each of his buyers the r

Suppose Johnny, seven years old, is selling lemonade and he sells each of his buyers the refreshment for the maximum price that each buyer is willing to pay. Johnny is practicing

a.perfect competition.

b.perfect price discrimination.

c.second-degree price discrimination.

d.third-degree price discrimination.

52.Arbitrage is

a.a form of negotiation between two parties having a disagreement.

b.buying a good in one market and selling it in another for a profit.

c.a form of price discrimination where the producer sells its product at two different prices.

d.a means of deciding the most efficient way of producing a product.

53.Which of the following statements is false?

a.The perfectly competitive firm and the perfectly price-discriminating monopolist both exhibit resource-allocative efficiency.

b.The perfectly competitive firm, unlike the single-price monopolist, exhibits resource-allocative efficiency.

c.The perfectly competitive firm charges the same price for each unit of the good it sells.

d.The perfectly price-discriminating monopolist charges the same price for each unit of the good it sells.

54.If a perfectly competitive firm and a single-price monopolist face the same demand and cost curves, then the competitive firm will produce a

a.greater output and charge a lower price than the monopolist.

b.greater output but charge the same price as the monopolist.

c.greater output and charge a higher price than the monopolist.

d.smaller output and charge a lower price than the monopolist.

e.smaller output and charge a higher price than the monopolist.

55.If a perfectly competitive firm and a single-price monopolist face the same demand and cost curves, then

a.the competitive firm will attain resource-allocative efficiency, but the monopolist will not.

b.the competitive firm will attain resource-allocative efficiency, but the monopolist may or may not, depending upon the demand for its product.

c.the competitive firm will not attain resource-allocative efficiency, but the monopolist will.

d.both the competitive firm and the monopolist will attain resource-allocative efficiency.

e.neither the competitive firm nor the monopolist will attain resource-allocative efficiency.

56.If a perfectly competitive firm and a perfectly price-discriminating monopolist face the same demand and cost curves, then

a.the competitive firm will attain resource-allocative efficiency, but the monopolist will not.

b.the competitive firm will attain resource-allocative efficiency, but the monopolist may or may not, depending upon the demand for its product.

c.the competitive firm will not attain resource-allocative efficiency, but the monopolist will.

d.both the competitive firm and the monopolist will attain resource-allocative efficiency.

e.neither the competitive firm nor the monopolist will attain resource-allocative efficiency.

57.If a single-price monopolist and a perfectly price-discriminating monopolist face the same demand and cost curves, then

a.the single-price monopolist will attain resource-allocative efficiency, but the discriminating monopolist will not.

b.the single-price monopolist will attain resource-allocative efficiency, but the discriminating monopolist may or may not, depending upon the demand for its product.

c.the single-price monopolist will not attain resource-allocative efficiency, but the discriminating monopolist will.

d.both the single-price and the discriminating monopolist will attain resource-allocative efficiency.

e.neither the single-price nor the discriminating monopolist will attain resource-allocative efficiency.

58.Which of the following statements is true?

a.The perfectly competitive firm produces a level of output at which P=MC.

b.The single-price monopolist produces a level of output at which P > MC.

c.The perfectly price-discriminating monopolist produces a level of output at which P>MC.

d.a and b

e.all of the above