A customer pays an admission fee to get into the local YMCA and also a monthly membership fee. This is called
A. block pricing.
B. price discrimination.
C. bundling.
D. two-part tariff.
Answer: D
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The market demand is the ________ of the individual demand of all the potential buyers
A) square of the sum B) sum C) product D) square root of the sum
If the deficit is financed by selling bonds to the ________, the money supply will ________, causing aggregate demand to ________
A) public; rise; increase B) public; fall; decrease C) central bank; rise; increase D) central bank; fall; decrease
Suppose Dean has $500 and there are two companies he could invest X dollars in: Dog Gone Salon, which has a payoff of 2X with 50% probability and $0 with 50% probability and Pretty Kitty Grooming, which has a payoff of 4X with 25% probability and $0 with 75% probability. Which of the following is true?
A. It doesn't matter how distributes his $500 between the two investments, the expected payoff and the standard deviation will always be the same. B. Even though the expected payoff is the same for both investments, investing in Dog Gone Salon involves less risk. C. Even though the expected payoff is the same for both investments, investing in Pretty Kitty Grooming involves less risk. D. Investing in Pretty Kitty Grooming offers a higher expected payoff.
When entry occurs in a monopolistically competitive industry, which of the following will likely occur?
a. Marginal costs to society will exceed the price people are willing to pay. b. Price will be equal to the marginal revenue gained by society. c. The marginal revenue curve will shift to the left. d. A smaller quantity will be demanded at any given price.