An article on how prices in South Bend, Indiana rise during Notre Dame home football games noted: "For the Sept. 16 game against the University of Michigan, the South Bend Marriott is charging $649 a night for a double room
The Marriott's regular weekend price is $149 a night."
Which of the following statements is true?
A) The Marriott has adopted this pricing strategy to capitalize on arbitrage profits.
B) There is no evidence of price discrimination; the Marriott is responding to increased demand for hotel rooms in the face of constant supply.
C) The Marriott is practicing first-degree price discrimination by charging what the market will bear.
D) This is evidence of third-degree price discrimination because hotel accommodation on a particular day is not a product that can be resold later.
B
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A. Expansions and recessions are irregular in length and severity. B. Durable-goods industries are less sensitive to short-term fluctuations than service and non-durable industries. C. Expansions and recessions are felt throughout the economy. D. The unemployment rate rises during recessions.
Free-riding by online retailers results in a(n) ________ amount of product-specific services, which ________ harm the manufacturer.
A) optimal; does B) sub-optimal; does C) sub-optimal; does not D) optimal; does not
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a. oral auctions b. second-price auctions c. first-price sealed bid auctions d. common value auctions
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a. the finances necessary for firms to produce their products. b. buildings and machines used in the production process. c. the money households use to purchase firms' output. d. stocks and bonds.