A pricing strategy that requires consumers pay an up-front fee plus an additional fee for each unit of product purchased is a
A) tying contract.
B) two-part tariff.
C) form of perfect price discrimination.
D) none of these.
B
You might also like to view...
A rent ceiling on housing creates a problem of allocating the available housing units because
A) the demand for housing decreases and the demand curve shifts leftward. B) the supply of housing increases and the supply curve shifts rightward. C) a shortage of apartments occurs. D) a surplus of apartments occurs. E) it eliminates search, which is one of the major ways housing units are allocated.
Lerner's view on debt financing is
A. Future generations bear a burden of external debt. B. Burden of debt can be transferred across generations. C. Internal debt creates no burden for the future generations. D. Government debt crowds-out the available funds for private sector.
. A subsidy:
A. All of these statements are true. B. is a requirement that the government pay an extra amount to producers or consumers of a good. C. is used by governments to encourage the production and consumption of a particular good or service. D. is used by governments as an alternative to price controls to benefit certain groups without generating a shortage or a surplus.
In medieval Europe, small farmers held their land in several scattered plots, even though this created obvious inefficiencies. Which of the following is an economic explanation of such behavior? a. Medieval farmers did not use rational decision making. b. Medieval farmers were not as clever as their modern counterparts. c. Medieval farmers were attempting to reduce their risk. d. Medieval farmers put up with scattering as a natural consequence of marriage and inheritance.
a. Medieval farmers did not use rational decision making. b. Medieval farmers were not as clever as their modern counterparts. c. Medieval farmers were attempting to reduce their risk. d. Medieval farmers put up with scattering as a natural consequence of marriage and inheritance.