Consider a discount retailer such as Costco which uses a two-part tariff pricing strategy. The Costco membership fee
A) is used by Costco to cover its fixed costs of production.
B) buys the consumer the right to make future purchases at Costco.
C) is a resalable asset to the consumer.
D) is a resalable asset to the producer.
B
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Community-wide poverty:
A. is nonexistent in the developed world. B. creates problems beyond those faced by poor individuals living in wealthier communities. C. only creates problems in less wealthy countries. D. None of these is true.
Economists who study economic mobility have found that the income of a grandfather and his grandson's income are
a. not closely related. b. negatively related. c. directly related. d. equal.
Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the income effect associated with a decrease in the price of a textbook will result in
a. a decrease in the consumption of textbooks and a decrease in the consumption of Ramen noodles. b. a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles. c. an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles. d. an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
If the actual price level is 165, but people had been expecting it to be 160, then
a. the quantity of output supplied rises, but only in the short run. b. the quantity of output supplied rises in the short run and the long run. c. the quantity of output supplied falls, but only in the short run. d. the quantity of output supplied falls in the short run and the long run.