Recall the Application about low-price guarantees and the prices of tires to answer the following question(s).Recall the Application. A study of the retail tire market suggests that prices are ________ in markets where firms offer low-price guarantees.
A. generally higher
B. generally lower
C. always lower
D. generally unchanged
Answer: A
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Why might it be a bad idea to engage in first-degree price discrimination?
A. Price discrimination is illegal and can lead to lawsuits and lost customers. B. The information needed does not exist and scarce resources should not be used searching for it. C. Price discrimination in any form is not viable for most companies as a way to increase profits. D. The information needed can be costly and can lead to decreased profits for the company.
A(n) ________ in U.S. prices will cause an increase in the demand for U.S. dollars and a(n) ________ in the (per dollar) exchange rate
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $20, what is Giuseppe's profit-maximizing output?
A) 2 pizzas per hour B) 3 pizzas per hour C) 4 pizzas per hour D) 0 pizzas per hour
What is an imperfectly competitive industry?
What will be an ideal response?