a) Suppose Oregon has many apple trees and the price of apples is low.Nevada has few apple trees and the price of apples is high.If Amy buys low-priced apples in Oregon and ships them to Nevada where she resells them at a higher price, Amy is practicing ...

1) perfect competition

2) employment discrimination

3) predatory lending

4) marginal utility per dollar spent maximization

5) arbitrage

b) Suppose Oregon has many apple trees and the price of apples is low. Nevada has few apple trees and the price of apples is high. Amy buys low-priced apples in Oregon and ships them to Nevada where she resells them at a higher price.Is Amy exploiting her customers in Nevada?

1) No, customers in Nevada voluntarily buy apples from Amy

2) Yes, Amy's actions increase apple prices in Oregon

3) Yes, Amy's actions increase apple prices in Nevada

4) No, Amy is not earning profits

c) Suppose Oregon has many apple trees and the price of apples is low. Nevada has few apple trees and the price of apples is high. Amy buys low-priced apples in Oregon and ships them to Nevada where she resells them at a higher price.Is Amy likely earning long-run economic profits?

1) Amy will earn long-run economic profits if she is the first to resell Oregon apples in Nevada

2) Amy will not earn long-run economic profits if other firms can engage in arbitrage in the apple market

3) Amy will earn long-run economic profits if other firms begin buying apples in Oregon to resell in Nevada

4) Amy will earn long-run economic profits if other firms can engage in arbitrage in the apple market.

d) Perfect price discrimination is

1) likely to occur because it results in economic efficiency

2) likely to occur because it results in higher profits

3) unlikely to occur because firms are typically able to keep consumers who buy a product at a lower price from reselling to consumers with a higher willingness to pay

4) unlikely to occur because firms typically do not know how much each consumer is willing to pay

e) Perfect price discrimination is

1) inefficient because it converts a portion of consumer surplus into producer surplus

2) efficient because it converts what would have been deadweight loss into consumer and producer surplus

3) efficient because it converts into producer surplus what had been consumer surplus and deadweight loss

4) inefficient because it results in no consumer surplus