A firm charges a price below its average total cost so that it drives out its competition. This is an example of:
A. a tie-in sale.
B. duopoly pricing.
C. price discrimination.
D. predatory pricing.
Answer: D
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The table above gives Jane's total utility from magazines and CDs. The price of a magazine is $4 and the price of a CD is $10 and Jane's budget is $88. What is Jane's total utility when she maximizes her utility?
A) 70 units B) 1516 units C) 2536 units D) 2586 units
Judy has just looked through her favorite catalog that came in the mail and has placed an order. The catalog is an example of
A) mass marketing. B) direct marketing. C) indirect marketing. D) interactive marketing.
Which of the following is not an example of a business operated by a consumer cooperative?
a. grocery store b. apartment building c. Sunkist, a farm cooperative owned and operated by citrus growers d. health plan e. electric power facility
Explain why a forward contract may actually carry more risk than a futures contract.
What will be an ideal response?