If Ben values good X more than good Y and Catherine values good Y more than good X a firm can increase its profits by
A) charging the same price for both goods.
B) bundling the goods.
C) selling the goods in a competitive market.
D) charging one price per good.
B
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The aggregate production function shows that an economy increases its real GDP in the short run by
A) developing new technologies. B) increasing its physical capital stock. C) using more labor. D) exploring for new deposits of natural resources.
In a competitive equilibrium all these relationships hold but one. Which one?
A) Nd=Ns B) Y=G+C C) G=T D) w=z
Which of the following are considered ad valorem taxes?
A) taxes assessed by charging a rate equal to a percentage of an item's price B) taxes assessed by charging a flat amount per unit purchased C) taxes based on the amount of debt that the government must repay D) taxes based on the amount of spending the government will undertake
Inflation tends to redistribute real income from lenders to borrowers
a. True b. False Indicate whether the statement is true or false