Given that the firm offers both the products, what prices can it offer to motivate the two groups to profitably self-sort into buying the correct brand
a. No-name $60; High-end $100
b. No-name $50; High-end $100
c. No-name $50; High-end $90
d. No-name $60; High-end $90
c
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The condition, MRSC,C' = 1 + r, describes the representative consumer's
A) investment decision. B) consumption - savings decision. C) current period work - leisure decision. D) future period work - leisure decision.
What is the best example of the law of supply?
What will be an ideal response?
An oligopolist charges a lower price than the short-run profit-maximizing price. How does this affect the firm’s allocative efficiency?
a. The firm achieves allocative efficiency because P 1 exceeds MC.
b. The firm fails at allocative efficiency because P 1 is less than the minimum ATC.
c. The firm fails at allocative efficiency because P 1 exceeds MC.
d. The firm achieves allocative efficiency because P 1 is less than MC.
We measure a person's productive contribution in a market system by
A) the marginal factor cost theory of the firm. B) the profit maximization theory of the firm. C) the marginal revenue product theory of wage determination. D) the egalitarian theory of wage determination.