The water-diamond paradox
A. occurs because goods essential to life such as water are cheap (and sometimes free).
B. occurs because nonessential goods such as diamonds are rare and therefore very expensive.
C. occurs because the price of a product is determined by its marginal utility, not its total utility.
D. All of the choices are correct.
D. All of the choices are correct.
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Which of the following pricing policies compensate customers if the firm fails to provide the best price in the market?
A. Brand loyalty B. Randomized pricing C. Beat-or-pay D. Price matching
A fixed resource is one that
A. cannot be varied in the short run. B. is physically tied to a specific location. C. costs more than the average daily revenue of the firm. D. can be disposed of only if the firm goes out of business.
Potential output is equal to
A. short-run aggregate demand. B. long-run aggregate supply. C. short-run aggregate supply. D. long run aggregate demand.
When conducting cost-benefit analysis, it is important to ignore previously incurred costs and previously received benefits
Indicate whether the statement is true or false