When Microsoft put together a set of products with the Windows operating system, it was practicing
A) bundling.
B) tie-in sales.
C) versioning.
D) compacting.
A
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In the Keynesian model, it is assumed that, when demand for a firm's product changes, the firm:
A. changes prices and production levels to meet demand. B. changes prices to meet the demand. C. changes production levels to meet the demand. D. changes prices, but holds production levels constant, to meet the demand.
If demand decreases while supply increases, then the equilibrium price
A. may increase, decrease, or stay the same. B. always increases. C. never changes. D. always decreases.
Suppose the equilibrium real federal funds rate is 5 percent, the target rate of inflation is 3 percent, the current inflation rate is 5 percent, and real GDP is 4 percent above potential real GDP. If the weights for the inflation gap and the output gap
are both 1/2, then according to the Taylor rule the federal funds target rate equals A) 1 percent. B) 9 percent. C) 13 percent. D) 17 percent.
The figure above shows a natural monopoly that the government must regulate. Which of the following pairs most likely results in similar outcomes?
A) marginal cost pricing and rate of return regulation B) marginal cost pricing and a two-part tariff C) average cost pricing and rate of return regulation D) predatory pricing and price caps E) marginal cost pricing and price cap regulation