A firm that can sell essentially the same product with the same quality under different brand names that have different perceived quality, the firm
A) has a moral hazard problem.
B) creates noise in the market.
C) creates an arbitrage opportunity.
D) is engaging in unfair trading practices.
B
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If Big Box Store has customers with identical demands, if it practices two-part pricing, the profit-maximizing user fee is ________ the marginal cost of Big Box Store's product.
A) less than B) greater than C) exactly double D) equal to
If the transactions approach to measuring money is used, then the money supply consists of
A) currency only. B) transaction deposits only. C) currency and transaction deposits only. D) currency, checkable and debitable deposits, and traveler's checks.
Efficiency is the condition that exists when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another
Indicate whether the statement is true or false
For the infant-industry argument for tariffs to be appropriate, it is necessary that
A. the country has access to the most modern production techniques. B. only industries that currently are operating efficiently will be protected. C. the government can identify which industries will eventually be able to compete with more established foreign producers. D. the industry be deemed essential by the government.