Customers often complain about the high price of accessories for their cell phone including batteries, chargers and head sets. Often these items can cost even more than the price of the phone
Explain using price elasticity why this might be the case.
Once you have purchased a cell phone you are likely to have a more price inelastic demand for the accessories. Even though it would be nice to shop around the accessories of the competitors products are typically not interchangeable and in any event you likely have a two-year contract with your service provider that makes shopping around unattractive.
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A hierarchy is usually a group of people who issue orders to subordinates
Indicate whether the statement is true or false
Suppose a fishing boat currently brings 10,000 fish to market each day and earns a profit of $40,000 when the price of fish is $12 . Suppose that there are 100 workers on the boat, and each works 10 hours each day. If their health insurance premiums, paid by the boat owner, increase by $80 per worker, what will the new profit be?
a. $80,000 b. a loss of $40,000 c. $48,000 d. $32,000 e. a loss of $760,000
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.
Limited liability exists when
A. the liability of owners is limited to the share of the debt they personally took on. B. partners specialize and each partner is responsible for the debts of his or her specialized area. C. the liability of owners is limited to the value of the shares in the firm they own. D. bondholders must receive their payments before stockholders can earn any money.