The following table contains different consumers' values for three software titles: PowerPoint, Excel, and Word. Suppose there are 100 consumers of each type. It costs Microsoft $5 to produce each piece of software. If Microsoft wants to devise a pricing strategy that is incentive compatible between consumer types and will maximize its profit, then it should:Consumer TypesPower PointExcelWordAccountants$75$100$150Marketing/Sales$125$80$135Administrative Assistants$50$175$75
A. charge a single price of $300 for the bundle of PowerPoint, Excel, and Word.
B. charge $125 for PowerPoint, $175 for Excel, and $150 for Word.
C. charge $325 for the bundle of PowerPoint, Excel, and Word and permit consumers to purchase each software title individually at $81.10 each.
D. charge $50 for PowerPoint, $80 for Excel, and $75 for Word.
Answer: A
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A) unit of account. B) medium of exchange. C) store of value. D) standard of value.
When each member of a group has transitive preferences but the collective preferences of the group are not transitive, this is an anomaly known as the ________
Fill in the blank(s) with correct word
The money demand function implies that money demand is
A) positively related to interest rates. B) negatively related to bond prices. C) negatively related to interest rates. D) negatively related to transactions in the economy.
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a. $414.09. b. $434.00. c. $441.87. d. $481.24.