The textbook says that which of the following is among the key forces shaping today's economy?
A. Accounting scandals
B. Socialism
C. Social networking
D. The evolution of financial markets
Answer: D
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A consumer or producer who does not pay for use of a nonexclusive good but expects others to pay is known as a:
A) free rider. B) price setter. C) fringe element. D) none of the above
Pricing to Competition When ShorTech introduced its Quadrant mobile phone, it had few competitors and so it set a price of $500 when its unit cost was $350 . The economics consulting firm it hired to estimate the demand elasticity confirmed this was the
optimal price. Since then, entry has occurred that make customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4 . Also, it eked out cost savings and now has a unit cost of $300 . What price should ShorTech charge now?
A store is choosing between advertising a credit card fee or a discount for paying cash to its customers. People will care more about:
A. getting the discount rather than avoiding the fee. B. avoiding the fee rather than getting the discount. C. neither; since it's the same outcome, people won't care one way or another. D. It is impossible to say without more information.
The free-rider problem arises when the number of beneficiaries is large and exclusion of any of them is impossible
a. True b. False Indicate whether the statement is true or false