Describe how a firm that sells only one brand of bleach may be able to increase its profit if it re-labels some of its bleach
What will be an ideal response?
The firm could sell the same bleach under more than one brand name. Then, as long as some customers believe that two different labels contain different quality bleach, the firm could price discriminate and increase its profit.
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The above figure shows the U.S. market for replacement cell phone batteries. With free international trade, the United States
A) exports 300,000 batteries. B) imports 500,000 batteries. C) imports 400,000 batteries. D) exports 700,000 batteries. E) imports 800,000 batteries.
Market equilibrium: i. can never occur because there are always people who want a good but cannot afford it. ii. occurs at the intersection of the supply and demand curves. iii. is the point where the price equals the quantity.
A) ii only B) iii only C) ii and iii D) i only E) i and ii
In economics, the term physical capital
A) refers to funds used by businesses to acquire goods and services. B) refers to all manufactured resources used for production. C) refers to the process of raising funds through the stock market. D) defines the stock of merchandise already produced.
If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be
A. two times the tax rate. B. close to the poverty line. C. close to the median income of all families. D. above the poverty line.