If both Ben and Catherine value good X more than good Y, a firm can increase profits by bundling the two products
Indicate whether the statement is true or false
False. The two demands are positively correlated. In this case it is more profitable to sell the two goods separately.
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Textbook publishers hope to maximize profits. Authors, however, face very different incentives. Authors are typically paid royalties, which are a specified percentage of total revenue from the sale of a book
And so, for example, if an author's contract says that she will receive 20 percent of the revenues from the sale of a text and the publisher's total revenues are $100,000, the author's royalties will be $20,000 . Who will prefer a higher price for the text, the publisher or the author?
Personal income is defined as
A) national income less retained earnings plus transfer payments and plus interest on government bonds. B) national income less depreciation. C) national income less personal taxes. D) national income plus retained earnings less transfer payments and less interest on government bonds.
An increase in income _____
a. makes the budget line flatter b. makes the budget line steeper c. makes the consumer worse off d. makes the consumer achieve a higher level of utility e. makes the consumer more selfish
A nondiscriminating monopolist will find that marginal revenue:
A. is less than average revenue or price. B. is identical to price. C. exceeds average revenue or price. D. is sometimes greater and sometimes less than price.