Suppose Dublin Electronics charges regular customers $90 for a Blu-ray player but allows senior citizens to purchase the same item for $75. Is this likely to be a successful price discriminating strategy?
A) No, because there are many different brands of Blu-ray players and consumers will shop around.
B) Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers.
C) Yes, firms price discriminate to maximize profits.
D) No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
D
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On the graph above, the wage level at point ________ might represent an efficiency wage
A) 2 B) 4 C) 6 D) 5
Managers of profit centers earn more when their divisions
a. increase their sales and increase their costs b. decrease their sales and increase their costs c. decrease the costs of the components for which they are responsible d. increase the costs of the components for which they are responsible
Firms in a perfectly contestable market will earn higher profits than firms in markets that are not perfectly contestable
a. True b. False Indicate whether the statement is true or false
In the presidential election of 2008, record numbers of people vote in national, state, and local elections. This phenomenon was even more pronounced among young voters. What are possible explanations for this?
What will be an ideal response?