Most companies that sell CDs by mail deliver in 1 to 2 weeks. Mosey Music, Inc, takes 4 weeks to deliver CDs. We should expect that Mosey Music
a. will lose all its customers
b. will not lose customers because the good in question is CDs, not the delivery date
c. will have to charge more for its CDs to make up for the business it loses through slow delivery
d. will have to charge less for its CDs to compete with firms that deliver CDs faster
e. will be able to charge the same amount for its CDs as other firms do, as long as the CD quality is the same
D
You might also like to view...
The U.S. economy is relatively closed in terms of economic activity related to exports and imports.
Answer the following statement true (T) or false (F)
Under a marginal cost pricing rule, a natural monopoly
A) makes a reasonable profit. B) makes an economic profit. C) earns accounting profits, but breaks even in economic terms. D) incurs an economic loss. E) makes a normal profit, but it cannot be determined whether or not it makes an accounting profit.
An economy with a trade surplus must also have:
A. a budget surplus. B. positive net capital inflows. C. positive net capital outflows. D. a trade deficit.
When the anticipated rate of inflation declines, the real rate of interest
A) increases. B) decreases. C) is not affected. D) increases exponentially.