A cell phone manufacturer wants to make money from tied goods. Which of the following actions will further that goal?
a. The firm sells its phones at a discount only to certain groups of customers.
b. The firm sells the only battery that will work in its phones.
c. The firm merges with another cell phone manufacturer.
d. The firm dramatically lowers its prices to drive a competitor out of business.
b. The firm sells the only battery that will work in its phones.
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Macland is specializing and trading with Microland. Where will Macland be on its production possibility frontier?
a. It will be on the PPF. b. It will be inside the PPF. c. It will be outside of the PPF. d. It will be shifting the PPF out.
Explain the following statement: "Good decisions typically require marginal analysis, which weighs added costs against added benefits."
The opportunity cost of leisure will rise if
A. nonlabor income decreases. B. nonlabor income increases. C. the wage rate increases. D. the wage rate decreases.
What is the impact on interest rates when the Federal Reserve decreases the money supply by selling bonds to the public?
What will be an ideal response?