Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally
A) prevent rival airlines from competing in that market.
B) increase marginal revenue more than marginal cost.
C) maximize marginal revenue.
D) discourage rivals from matching price cuts.
Answer: B
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The average person in the United States uses more than a million pounds of rocks, minerals and metals every year
Answer the following statement(s) true (T) or false (F)
In constructing the CPI, the BLS has to deal with commodity substitution bias, which is defined as
A) consumers' substitution of discount stores for full service stores to avoid the higher prices in the full service stores. B) consumers' substitution of cheaper goods for goods whose prices increase. C) the bias from quality changes in existing products that cause prices to increase. D) the bias from new goods being introduced that are more expensive than older goods. E) the bias that arises because the BLS changes the CPI market basket each month.
For each watch Denmark produces, it gives up the opportunity to produce 50 pounds of cheese. France can produce two watches at a cost of 150 pounds of cheese. Which of the following is true?
a. Denmark has a comparative advantage in producing both watches and cheese. b. France has a comparative advantage in producing both watches and cheese. c. France has the comparative advantage in producing watches. d. Denmark has the comparative advantage in producing watches. e. Denmark has the comparative advantage in producing cheese.
The price of a good will tend to rise when
What will be an ideal response?