Offering a product at a price below marginal cost is a more effective pricing strategy if
A. opportunity costs are higher.
B. information costs are higher.
C. information costs are lower.
D. sunk costs are higher.
Answer: B
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The ________ is the average hourly wage rate measured in current dollars, while the ________ is the average hourly rate measured in the dollars of a given reference base year
A) real interest rate; nominal interest rate B) nominal wage rate; real wage rate C) real wage rate; nominal wage rate D) nominal interest rate; real interest rate E) inflation rate; real wage rate
Any two of these events in questions 1 and 2 occur together? (Draw the diagrams!)
What will be an ideal response?
Which of the following events can not cause the labor-supply curve to shift?
a. a change in people's attitudes toward work b. an increase in the price of output c. a change in workers' alternative opportunities d. an increase in the rate of immigration
According to the search model developed by Stigler, when there are search costs, sellers know that consumers are becoming acquainted with product prices and consequently set the same price. In contrast, if there are no search costs, different prices can persist over time
Indicate whether the statement is true or false