When deciding what price to charge customers, a firm may choose to charge different prices based on customers'
a. Age
b. Willingness to pay
c. Location
d. All of the above
d
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Capital deepening will occur as long as total saving is greater than depreciation
Indicate whether the statement is true or false
Any combination of two goods that lies within the production possibilities frontier
A) is currently impossible to produce. B) is currently possible to produce. C) represents a more efficient combination of output than anything lying beyond the frontier. D) represents a more efficient combination of output than anything lying on the frontier.
Assume two locally owned used car dealerships that have been in direct competition for many decades. They have a choice of selling high-quality cars at a high price but also high costs because of the repairs that have to be made
The other choice is to sell low-quality cars at a low cost but market them as high quality cars. Explain using game theory why it is in the interest of both of these companies to continue to sell high-quality cars but it may not necessarily be in the interest of a new out-of-town dealership that has recently moved into town to do the same.
Supply-side economists:
a. saw influence beyond in both the Bush and Clinton administrations. b. disagreed with economist Arthur Laffer's views on taxes. c. were influential in President Reagan's decision to change the tax structure. d. believe that government regulations do not reduce productivity and undermine industrial efficiency.