Which of the following examples shows product differentiation?
a. When Carrie buys bananas, she doesn’t care what company produced them.
b. An automotive oil provides that same benefits for a car as other brands.
c. A grocery clerk says his store’s produce is at least as good a nearby supermarket.
d. An ad emphasizes how a laundry detergent cuts grease better than other brands.
d. An ad emphasizes how a laundry detergent cuts grease better than other brands.
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After 2003, The Federal Reserve usually keeps the discount rate
A) above the target federal funds rate. B) equal to the target federal funds rate. C) below the target federal funds rate. D) equal to zero.
Which of the following conditions is TRUE for a monopolist?
A) MR < P B) MR = P C) MR = AFC D) MR < AVC
When the price of coffee increases 5%, quantity demanded decreases 10%. The price elasticity of demand for coffee is ________ and total revenue from coffee sales will ________.
A. elastic; decrease B. inelastic; increase C. elastic; increase D. inelastic; decrease
Because the United States purchases more cars, stereos, and other goods from Japan than Japan purchases from the United States, it is often said that the United States has a "trade deficit" with Japan. Does this mean that the U.S. balance of payments is running a deficit? How would you more accurately characterize the effect that trade with Japan has on the balance of payments?