What is a better pricing strategy for the monopolist? At this price, what are the total profits to the monopolist?
a. Bundle the goods at $2,800 . Profits=$5,600
b. Bundle the goods at $4,000 . Profits=$8,000
c. Charge $2,800 for good 1 and charge $1,700 for good 2; Profits=$4,500
d. Charging the lowest price for each good individually is the best pricing strategy; profits = $7,000
b
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Frictional unemployment comes about because of
A) friction between labor and management. B) a mismatch between skills and available jobs. C) normal labor market turnover. D) a general economic slowdown.
Why don't consumers work in the two-period model?
A) It's a convenient simplification. B) It would make no difference to the model if consumers could work. C) People who participate in real-world credit markets do not work. D) We don't know how to include workers in the model.
To maximize satisfaction, the consumer must reach the lowest indifference curve that can be reached with a given level of income
a. True b. False Indicate whether the statement is true or false