Recently several food companies have adopted policies for "humane" treatment of animals to apply to providers of their meats. The food companies expect that their action will help differentiate their product from their competitors who have not adopted such policies. They expect that "differentiation" of their product will allow them to:
a) Do little to change their price because the food industry is a very competitive industry
b) Lower price so they will be able to sell more product
c) Raise price to cover higher input costs and get higher profit
c) Raise price to cover higher input costs and get higher profit
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The sacrifices made by societies in order to engage in military spending represent
A) the real costs of military spending. B) the excessive costs of military spending. C) the nominal costs of military spending. D) the opportunity costs of military spending.
A do-it-yourself approach to production is more likely when
a. technology is complex b. inputs are difficult to identify c. resources cannot easily be measured d. the price of inputs is known e. contracts are complex
For a monopolist:
a. price equals average total cost. b. price is above marginal revenue. c. marginal revenue equals zero. d. marginal cost equals zero. e. average total cost equals marginal cost.
Assume Saudi Arabia can produce 4 units of good X or 3 units of good Y. Tunisia can produce 5 units of good X or 8 units of good Y. What would be the terms of trade between Saudi Arabia and Tunisia for 1 unit of good Y?
A. Between 5/8 and 4/3 units of X. B. Between 4 and 8 units of X. C. Between 3 and 5 units of X. D. Between 3/4 and 8/5 units of X.