I frequently buy something which then has a rebate offer attached. I must fill in all the information requested, send off the form and then wait 8 weeks for the rebate. This practice is referred to as
A. a profit maximizing markup.
B. network economics.
C. exclusive contracting.
D. the hurdle model of price discrimination.
Answer: D
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Refer to Figure 24-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Which of the following is true? a. Average cost pricing reduces the incentives for a monopolist to find ways to reduce its costs
b. With natural monopoly, if regulators allow the firm to earn profits, there will be a welfare cost from producing too little of the good. c. Government regulation of monopolies aims to achieve the efficiency of large-scale production, without permitting the producers to charge monopoly prices. d. All of the above are true.
Looking at a Lorenz curve, the first quintile viwed from the origin records the
a. the income held by the richest 50 percent of population b. the income held by the richest 20 percent of population c. the income held by the poorest 50 percent of population d. the income held by the poorest 20 percent of population e. the wealth held by the poorest 10 percent of population
Will a rightward shift in aggregate demand result in long-run economic growth? Why?
What will be an ideal response?