Gasoline stations carrying the same fuel brand (e.g., Chevron) are able to charge different prices in San Francisco because:
A. location is a source for product differentiation.
B. gasoline stations are perfect price discriminators.
C. gasoline station operators form a cartel to act as a monopoly.
D. fuel quality varies across stores.
Answer: A
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Wheat farmers in Kansas would benefit from a devastating crop failure in North Dakota (another major wheat-producing state) if the U.S. demand for wheat is
a. inelastic b. elastic c. unit elastic d. downward sloping e. perfectly elastic
Under a flexible exchange rate system, which one of the following would not directly affect the exchange rate?
a. a change in income b. the relative inflation rates in two countries c. the salary of the president of the United States d. a change in capital flows e. a change in the level of exports or imports
Discrimination based on institutional factors occurs when:
A. women postpone having children in order to succeed professionally. B. women remain in low-paying jobs because of family responsibilities. C. employers hire a man who is more qualified than a woman. D. employers pay women less than men for doing the same job.
Compute the expected return, standard deviation, and value at risk for each of the following investments:Investment (A): Pays $800 three-fourths of the time and a $1,200 loss otherwise.Investment (B): Pays $1,000 loss half of the time and a $1,600 gain otherwise.State which investment will be preferred by each of the following investors, and explain why.(i) a risk-neutral investor(ii) an investor who seeks to avoid the worst-case scenario.(iii) a risk-averse investor.
What will be an ideal response?