What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $4,500 . Profits=$9,000
b. Bundle the goods at $6,000 . Profits=$12,000
c. Bundle the goods at $5,000 . Profits=$10,000
d. Bundle the goods at $9,500 . Profits=$19,000
b
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Programs designed to provide protection against unpredictable financial distress are known as:
a. social insurance programs. b. poverty programs. c. government transfers. d. negative income tax programs.
The trade-off between current consumption and the production of capital goods is also a trade-off between
A) the future cost for capital goods and future cost of consumption goods. B) having fewer needs and more wants in the future. C) satisfying the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.
If the interest rate falls, you would expect the price of any stock to
A. rise. B. fall. C. be unaffected. D. fall to zero.
Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Compare the conditions in the market when the price is $50 and when the price is $35. Which of the following describes how the market differs at these prices?
A) The difference between quantity supplied and quantity demanded is greater at $50 than at $35. B) At each price there is a surplus; firms will lower the equilibrium price in order to eliminate the surplus. C) At each price the supply of tote bags exceeds that demand for tote bags. D) At each price there is a surplus; the surplus is greater at $35 than at $50.