The problem of "double marginalization" is
a. The retail price being too high due to an inclusion of both manufacturer and retailer markup
b. The retail price being too low due to an exclusion of both manufacturer and retailer markup
c. The retail price being too high due to an exclusion of manufacturer markup
d. The retail price being too low due to an exclusion of retailer markup
a
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The market where currencies may be bought and sold for immediate delivery is known as
A) the forward exchange market. B) the spot exchange market. C) the purchasing power market. D) the futuristic exchange market.
Let P be the output price for a particular good. Why is the value P*MPL greater than MRPL for a monopolist?
A) The monopolist is not as technically efficient as firms operating under perfect competition. B) The monopolist hires less labor, so MPL is higher under a monopoly than under perfect competition. C) The monopolist sets a price that is higher than MR. D) A and C are correct. E) B and C are correct.
When a business firm makes an investment in physical capital, that investment is subject to _____.
a. state and local government incentives b. economic output and productivity c. political orientated incentives d. the discipline of the market
The wealth effect helps explain what feature in the aggregate demand and aggregate supply model?