Two-part tariffs offer a mechanism whereby the firm can
A) charge two different prices to distinct groups of customers.
B) collect two times as much from consumers as a single-price monopoly can.
C) capture some or all of the consumer surplus.
D) reduce some of its fixed costs.
C
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The Tiebout model offers a quasi-market solution to public good production and community development. What are some drawbacks to this model?
What will be an ideal response?
Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are sold at $20 per unit and 100 units of maple syrup are sold at $8 per unit. In 2009, the base year, the price of cranberries was $10 per unit and the price of maple syrup was $15 per unit. For 2010,
a. nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 90. b. nominal GDP is $1800, real GDP is $2000, and the GDP deflator is 111.1. c. nominal GDP is $2000, real GDP is $1800, and the GDP deflator is 90. d. nominal GDP is $2000, real GDP is $1800, and the GDP deflator is 111.1.
Suppose that Dairy Barn Foods produces a regular sour cream with 10 grams of fat per serving and a "low fat" sour cream with only 5 grams of fat per serving (assume that this is still considered a lot of fat to consume per serving). According to prospect
theory, how should Dairy Barn promote its "low fat" sour cream? A. It should make no mention of fat content, either in absolute terms or relative to its regular sour cream. B. It should advertise that the "low fat" sour cream has only "half the fat" of the regular sour cream. C. It should advertise that the "low fat" sour cream has only 5 grams of fat per serving. D. It won't matter what strategy Dairy Barn uses, as consumers are sufficiently informed as to not be affected by the advertising.
Refer to the given data. We can conclude from the information given that this firm is a:
A. pure monopolist.
B. discriminating monopolist.
C. monopolistic competitor.
D. pure competitor.