Which of the following is true in a perfectly competitive market?
a. Buyers can discern sharp differences in products.
b. Buyers can easily switch from one seller to another.
c. Buyers tend to have strong brand loyalties.
d. Buyers have a very strong influence on price.
b. Buyers can easily switch from one seller to another.
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Imports ________ consumer surplus, ________ producer surplus, and ________ total surplus
A) decrease; decrease; decrease B) increase; increase; increase C) increase; decrease; decrease D) increase; decrease; increase E) decrease; increase; increase
________ is the tendency to experience losses as more painful than the pleasures that result from gains of the same magnitude:
A. Loss aversion B. The availability heuristic C. The present-aim standard of rationality D. Fungibility
Which of the following pricing policies does NOT extract the entire consumer surplus from the market?
A. Block pricing B. First-degree price discrimination C. Two-part pricing D. Peak load pricing
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 20%, Nashbar Bicycle's total investment would be
A. $0. B. $100,000. C. $500,000. D. $700,000.