Zara is the largest fashion retailer in Europe. Which of the following would not a barrier to entry that protects Zara's market power?
a. two weeks to develop and deliver a new item, as opposed to an industry average of nine months
b. 10,000 new designs a year
c. stores can restock in a few days
d. little advertising
e. new fashions distributed twice a week, as opposed to twice a season
D
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Define behavioral economics
What will be an ideal response?
Which of the following is not a way by which price-discriminating firms can segment a market?
A) on the basis of the supplier's marginal cost of production, for example requiring customers to pay a premium for customizing options B) on basis of the buyer's location, for example requiring out-of-state students to pay higher tuition C) on the basis of time of purchase, for example long-distance calling D) by requiring an advance purchase, for example airline tickets
Left to themselves, most markets will eventually reach market equilibrium.
Answer the following statement true (T) or false (F)
Which of the following describes the national security argument for protectionism?
A) Nearly all industries can make some claim to strategic importance so such trade restrictions can get out of hand. B) Increases in economic surplus outweigh the decreases in consumer surplus that result from protectionism. C) Some goods should be insulated from foreign competition to ensure an adequate supply of these goods in the event of an international conflict. D) Private companies (for example, Coca-Cola) should not be forced to reveal their trade secrets to foreign companies.