A home appliances supplier offers substantial discounts to customers if they buy several of the firm's products. When bought together, these items cost considerably less than the sum of the prices of the items if they were bought separately. Which pricing arrangement is being discussed here?
a. Price dealing
b. Tacit collusion
c. Bundling
d. Skimming
c
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
Refer to Table 11-7. What is the marginal cost per unit of production when the firm produces 100 lanterns?
A) $420 B) $32 C) $11.1 D) $8.1
In profit centers
a. Managers are easy to evaluate because there is a simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically do not have the incentives to run their division efficiently
For the average total cost curve of a firm with economies of scale, what happens to costs as output increases?
(A) Costs go up. (B) Costs go down. (C) Costs initially go up and then go down. (D) Costs initially go down and then go up.