If a firm has consumers with different demands practices two-part pricing and it is profitable for the firm to sell to all consumer types, the profit-maximizing user fee will be ________ the firm's marginal cost of use.
A) greater than B) double C) less than D) equal to
A) greater than
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Refer to the scenario above. The present value of the positive cash flows from the investment in Plan 2 is equal to:
A) $9,209. B) $6,263. C) $15,670. D) $7,537.
A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . After a year, the manager has an opportunity to outsource production to another company at a cost per unity of $1.75 . If you are the manager, you
a. should consider the $400,00 . as sunk cost and therefore it should not be relevant to the decision. b. should base your decision upon economic profit and not accounting profit c. should avoid the fixed-cost fallacy d. all the above
The first union to organize workers across skills, industries, and regions was the
a. Knights of Labor b. Knights of Columbus c. American Federation of Labor d. Congress of Industrial Organizations e. Taft-Hartley
Suppose the unemployment rate in 2001 was 4.7, lower than the 5.4 percent unemployment rate that policymakers think is consistent with price level stability. Accepting the dictates of the Phillips curve, they would probably forecast for 2002
a. a higher rate of inflation b. a lower rate of inflation c. a higher rate of GDP growth d. a recession e. an economic stabilization at 4.7 percent unemployment