If reservation prices are positively correlated, then
A) pure bundling cannot increase a firm's profit.
B) pure bundling can increase a firm's profit.
C) it is unclear whether or not pure bundling can increase a firm's profit.
D) consumers lose leverage over firms.
A
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Explain the principle of neutrality with respect to taxes
What will be an ideal response?
The sale of foreign assets by a central bank accompanied by an open market purchase of securities of the same size results in:
A) a reduction in the monetary base B) an increase in the monetary base C) a sterilized intervention D) an unsterilized intervention
The host country's balance-of-payments problem tends to worsen when foreign firms:
a. invest solely in capital-intensive industries. b. repatriate their profits to the headquarters from the host country. c. acquire the foreign operations in order to diversify corporate investment holdings. d. refuse to share technological expertise with the host country. e. export all products to other countries.
According to the economic theory of labor markets, under what conditions will an individual spend time in nonmarket work?
a. When the utility from leisure exceeds the net utility from work. b. When the net utility from market work exceeds the net utility from nonmarket work. c. When the market can produce goods and services more cheaply than the individual. d. When the individual can produce goods and services more cheaply than the market can.