An inverse intensity customer sorting rule is one in which
a. customers with high willingness to pay secure the discounted goods
b. customers are rationed randomly between the discounted and full price goods
c. no customers purchase below their willingness to pay
d. customers with the lowest willingness to pay secure the discounted goods
e. brand loyalty allows the incumbent to retain its regular customers
d
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What will be an ideal response?
If a bottle of fine French wine costs US$250 in the U.S., 2500 rand in South Africa, there are no transaction costs, and the exchange rate is 10 rand/US$, then
A) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in South Africa will drop. B) there is an arbitrage opportunity by buying the wine in the U.S., and selling it in South Africa and the price in the U.S. will drop. C) there is no arbitrage opportunity. D) Unable to determine, since France is in the eurozone and we would need exchange rates in euro terms.
The market supply curve of a resource is
a. downward sloping b. upward sloping c. horizontal at the market price d. vertical e. determined by firms
Consider the production possibilities frontier displayed in the figure shown. If this society chooses to produce 15 watermelons in can produce no more than:
A. 400 bushels of apples.
B. 300 bushels of apples.
C. 200 bushels of apples.
D. 100 bushels of apples.