Answer the following statements true (T) or false (F)
1) In the situation in which consumers have nonidentical demands in two-part pricing, the profit-maximizing user fee is equal to the marginal cost of use.
2) In the situation in which consumers have nonidentical demands in two-part pricing, a firm's profit is always increased if it adjusts the access fee and user fee to sell to all consumers.
3) In all-or-nothing offers, the products packaged together are all the same.
4) If Pasta Meals sells its pasta and pasta sauce in a package and sells the products individually, this is an example of pure bundling.
5) Commodity bundling can increase a firm's profit and lower their transaction costs.
1) FALSE
2) FALSE
3) TRUE
4) FALSE
5) TRUE
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
If this economy was entirely closed to international trade, equilibrium price and quantity would be
A. Pa and x. B. Pc and z. C. Pa and z. D. Pc and v.
Suppose that the population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate
What will be an ideal response?
We have read in this chapter that people with insurance may be more likely to engage in risky behavior because they are insured. Does it make sense then that there should be an "insurance tax" on people that engage in these types of activities?
What will be an ideal response?
Some economists have found that U.S. imports of Chinese goods and resources
A) lower the price of goods for U.S. consumers. B) lower the cost of inputs for U.S. firms. C) increase the variety of products in U.S. markets. D) may enhance productivity of U.S. firms. E) all of the above