Consumers are willing to pay a higher price for a product with a brand name as opposed to a generic product because:
a. a brand name provides a signal about a product's quality and reliability.
b. they are willing to pay more for the privilege of watching the firm's commercials.
c. a product with a brand name is always of higher quality.
d. consumers maximize utility by purchasing the most expensive products.
e. consumers are irrational.
a
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The required reserve ratio is the
A) amount of excess reserves the bank holds just in case. B) total amount of reserves the bank holds in its vaults. C) total amount of reserves the bank holds at the Fed. D) amount of reserves banks are required by the Fed to be held as a percentage of the bank's deposits. E) amount of reserves banks are required by the Fed to be held as a percentage of the bank's loans.
"Marginal cost is the increase in total cost that results from a one-unit increase in a variable input." True or false? Explain
Indicate whether the statement is true or false
The marginal propensity to consume is a measure of the additional consumption that results from a one-dollar increase in disposable income
a. True b. False Indicate whether the statement is true or false
Suppose the tax amount on the first $10,000 income is $0; $2000 on the next $20,000; $4000 on the next $20,000; $6000 on the next $30,000; and 40 percent on any income over $80,000. Family A has income of $30,000 and Family B has income of $80,000. What is the marginal and average tax rate for each family?
A. Family A: marginal-10 percent; average-10 percent; Family B: marginal-40 percent; average-40 percent. B. Family A: marginal-10 percent; average-20 percent; Family B: marginal-30 percent; average-23 percent. C. Family A: marginal-10 percent; average-15 percent; Family B: marginal-40 percent; average-20 percent. D. Family A: marginal-10 percent; average-6.7 percent; Family B: marginal-20 percent; average-15 percent.