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A competitive firm is a price-taker: it can sell as much or as little as it chooses at the market price. Demand is perfectly elastic at the level of the market price. Refer to the diagrams. Suppose the market price is G, which is the basis for the total revenue curve in the panel on the left. Which output level in the right panel corresponds to ...

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Consider a zero-coupon bond with a $1,100 payment in one year. Suppose the interest rate decreases from 10% to 8%. The price of this bond: A) Increases from $1,000 to $1,018. B) Increases from $1,000 to $1,375. C) Decreases from $110 to $88. D) Decreases from $1,210 to $1,188.

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of personalized pricing and quality allocation (PPQ), whereby duopoly firms charge different prices and offer different qualities to different consumers, based on their willingness to pay. Our model sheds light on the equilibrium product-line pricing and quality schedules offered by firms, given that none, one, or both firms implement PPQ.

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Consider a zero-coupon bond with a $1,100 payment in one year. Suppose the interest rate decreases from 10% to 8%. The price of this bond: A) Increases from $1,000 to $1,018. B) Increases from $1,000 to $1,375. C) Decreases from $110 to $88. D) Decreases from $1,210 to $1,188.

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