The fixed fee a firm is able to charge as part of a two-part pricing strategy is inversely related to the amount of consumer surplus the customer realizes at the profit-maximizing level of output
Indicate whether the statement is true or false
FALSE
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
People choose to do something:
A. when they believe the benefits outweigh the costs of the decision. B. when they believe the costs outweigh the benefits of the decision. C. when they believe their decision cannot be questioned by anyone else. D. when they believe it won't harm anyone and will better themselves.
Most people buy insurance because they
a. are risk lovers b. enjoy the gamble c. are risk neutral d. want to avoid gambles
If full employment GDP is $8 trillion and equilibrium GDP is $7 trillion
A. there is definitely an inflationary gap. B. there is probably an inflationary gap. C. there is definitely a recessionary gap. D. there is probably a recessionary gap.