Zoe is an executive at Dell Computer Company who is in charge of designing the next version of laptop computers. She will consider such features as screen size, weight, processor speed, and CD and DVD drives
Given the fact that it is costly to include more features in new products, why might Zoe be interested in data on how much consumers paid for a range of laptops with different attributes? A) in order to estimate willingness to pay for each feature.
B) in order to set an optimal price for the laptops.
C) in order to determine the best features to include.
D) in order to estimate willingness to trade off one feature for another.
E) all of the above
D
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Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:
A. increasing human capital. B. increasing physical capital. C. increasing the availability of natural resources. D. improving technology.
Excess reserves immediately decrease if
A) reserve requirements increase. B) reserve requirements decrease. C) the discount rate increases. D) the discount rate decreases.
If marginal utility is negative
A) total utility increases at a decreasing rate. B) the consumer will not consider extra units of the good even if its price is zero. C) the consumer will want to consume the unit only if it is free. D) the consumer likes the commodity, but not as much as he or she once did.
An advantage of imposing a tax on the producer that generates pollution is that
A) it forces the polluting producer to internalize the external cost of the pollution. B) the government can keep tabs on exactly what is produced in an industry. C) it will eliminate pollution. D) a producer can pass the cost of the pollution to consumers.