If all consumers are uninformed about the quality of a product
A) firms can increase product by selling the same product under a different name at a different price.
B) firms will not be able to price discriminate.
C) firms will price discriminate.
D) firms will increase profits by charging different prices for the same product.
B
You might also like to view...
Recently the governor of Vermont proposed that cigarette taxes in Vermont should be increased substantially, from 44 cents a pack to 66 cents a pack. He estimates that Vermont can raise $20 million in revenue from this tax hike
He also pointed out that the neighboring state of New Hampshire was considering an increase in cigarette taxes. a. How can it be that an increase in cigarette taxes will increase tax revenue, because, after all, a higher tax will increase cigarette prices and thereby decrease the quantity demanded? b. If New Hampshire chooses not to increase cigarette taxes, is it likely that Vermont can still raise $20 million in tax revenue? Why or why not? Explain
A firm that shuts down in the short run experiences losses equal to
A) zero. B) total variable costs. C) total fixed costs. D) total marginal costs.
The percentage of national income spent on health care
A) has steadily decreased since 1965. B) has steadily increased since 1965. C) increased until the end of the 1970s and then decreased in the 1980s and 2000s. D) decreased until the end of the 1970s and then increased in the 1980s and 2000s.
When a firm faces a downward-sloping demand curve, marginal revenue
a. is constant regardless of how much output the firm produces b. is less than price c. increases as the firm produces more output d. decreases if the firm produces less output e. is equal to the price per unit of output