Exhibit 13-3 Exhibit 13-3 Gives Data on the Number

question 135

Multiple Choice

Exhibit 13-3 Exhibit 13-3 gives data on the number of tools a certain firm buys to use in its production process.Assume that the tools are expected to last indefinitely, that operating expenses are negligible, and that the price of the firm's output is expected to remain constant in the future.At what interest rate would the firm in Exhibit 13-3 choose not to buy any machines?

• A)10%
• B)20%
• C)30%
• D)35%
• E)40%

---

Definitions:

Price Discrimination

A strategy in pricing where the same provider sells identical or nearly identical products or services at varying prices across different markets.

Deadweight Loss

The reduction in total societal welfare resulting from market inefficiencies, typically due to taxes, subsidies, or monopolies.

Market Output

The total quantity of goods or services produced and offered for sale in a particular market.

Barriers To Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or stringent regulations.