Which of the following is an example of price discrimination?
a. Nabisco provides cents-off coupons for its products.
b. Amtrak offers a lower price for weekend travel compared to weekday rates on the same routes.
c. Hotel rates for AAA members are lower than for nonmembers.
d. All of the above are correct.
d
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Conflicts of interest arising from management advisory services brought down ________ in 2002
A) Enron B) WorldComm C) Arthur Andersen D) Global Crossing
An important difference between perfect competition and monopoly is
A) a monopoly is profitable and a perfect competitor is not. B) the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve. C) the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve. D) a monopoly is not regulated by the market, while a perfect competitor is regulated by the market.
Define and illustrate a principal-agent problem
Suppose that someone has a disposable annual income of $50,000 and an MPC=0.8. They allocate $10,000 of that for necessities. The remainder of the income is both spent and saved. Based on this information autonomous consumption is:
A. $32,000. B. $50,000. C. $40,000. D. $10,000.