Vacation tours to Europe invariably package visits to disparate regions: cities, mountains, and the seaside. Bundling, a type of second degree price discrimination, is most profitable when:
a. the preference rankings of vacationers travelling together are negatively correlated.
b. a preference for cities is always higher than preferences for mountain vistas.
c. preference rankings of vacationers travelling together are positively correlated.
d. preference for the seaside is always higher than preferences for city excursions.
e. no one wants to take a European vacation package to cities, mountains, and the seaside.
a
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Which of the following is the most effective way to internalize a technology spillover?
a. taxes b. patents c. government regulations d. free markets
Which of the following is closest to the future value of a $4,000 deposit earning 2 percent interest annually after 10 years?
A. $4,876 B. $4,122 C. $4,805 D. $5,025
If country A has a comparative advantage in the production of good X over country B, then
A. country A also has an absolute advantage in the production of this good. B. the opportunity cost of producing X in country A is higher than in country B. C. the opportunity cost of producing X in country A is lower than in country B. D. the opportunity cost of producing X in country A is higher or lower than in country B.
Refer to Figure 15-19. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to
a. $3,125.
b. $1,562.50.
c. $0.
d. $6,250.