The conditions in which vertical relationships can enhance a firm's ability to price discriminate include
a. the manufacturer's product is of value to just one type of customer
b. the costs of arbitraging the price differences across markets is large
c. the manufacturer acquires the distributer in the lower priced market
d. competition provide little ability for the manufacturer has to price above marginal cost
c
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In a world of certainty, the interest rate reflects
A) the degree of risk. B) differing time patterns of individuals' consumption preferences. C) economic growth. D) qualifications of borrowers.
Clarke Mementos manufactures small figurines that they sell to retailers around the country. Clarke sells the figurines for $5.00 each, a price the firm considers given. Clarke's production function is given by the expression:
Q = 60L - 0.5L2, where Q = number of figurines per day, and L = number of skilled workers per day. Based on this production function, the average and marginal products of labor are as follows: AP = 60 - 0.5L MP = 60 - L a. Write an expression for the firm's marginal revenue product. b. Clarke currently pays $150 per day (including fringe benefits) for each of its skilled workers. How many workers should the firm employ? c. Clarke's workers are highly skilled artisans with a great deal of job mobility. The firm's managers fear that they must increase the workers' total compensation to $200 per day to remain competitive. What impact would the wage increase have upon the firm's employment?
At any moment in time, middle-age people tend to have higher incomes than both younger and older people do
a. True b. False Indicate whether the statement is true or false
Which one of the following will determine the size of the production possibilities curve?
a. amount of labor b. amount of capital c. entrepreneurship d. all of the above