If a firm is practicing two-part pricing and it is charging a user fee that is ________ its marginal cost, it has customers with ________ demands.
A) less than; nonidentical
B) greater than; nonidentical
C) greater than; identical
D) less than; identical
B) greater than; nonidentical
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Which of the following statements is true?
A) Convertible preferred stockholders receive quarterly interest payments. B) Common stockholders receive a fixed dividend, and they are entitled to it before preferred stockholders get anything. C) Convertible preferred stock can be converted into preferred stock at a predetermined price. D) Many buyers of common stock are more interested in capital gains than in dividends.
A firm is an organization that produces
a. only goods for sale to households b. only services for sale to households c. goods and services for sale to households and businesses d. only goods for sale to other businesses e. only resources
The difference between positive statements and normative statements is that
A. a positive statement is a statement of fact and a normative statement involves value judgments. B. normative statements are provable while positive statements are not. C. a positive statement involves a value judgment and a normative statement is a statement of fact. D. value judgments are made in normative statements but assumed in positive statements.
The production possibility frontiers of Northland and Southland are given. Without trade, Northland produces and consumes 20 apples and 5 bananas and Southland produces and consumes 10 apples and 40 bananas. Could they increase their consumption bundle by optimizing production and trading?NorthlandSouthlandApplesBananasApplesBananas300300205202015101040015060
A. Yes, they could gain 75 bananas and 60 apples. B. Yes, they could gain up to 60 apples without losing bananas. C. No, Southland does at least as well at producing both, so it would have no incentive to trade. D. Yes, they could gain up to 15 bananas without losing apples.