A mail-order clothing company offers a discount if customers purchase two shirts instead of only one. This is necessarily an example of quantity discrimination
Indicate whether the statement is true or false
False. The shipping cost per item is less for two shirts than for one. This cost difference may explain the discount.
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When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets, and the price Boeing receives is ________ than it could receive from an additional U.S. buyer
A) lower than; higher B) higher than; higher C) the same as; higher D) lower than; lower E) higher than; lower
The long-run average cost curve of a natural monopoly
A) is positively sloped until it crosses the demand curve. B) intersects the demand curve while it is negative sloped. C) intersects the demand curve while it is positively sloped. D) is the natural monopoly's supply curve. E) is the same as the natural monopoly's demand curve.
What are three reasons that employees may prefer to save through pensions provided by employers rather than through savings accounts?
What will be an ideal response?
Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Q = 20,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. What price does KGC charge per unit when it sells 5,000 cubic years of concrete per year?
A. $12.50 B. $25.00 C. $37.50 D. $50.00