IBM went to the trouble of adding five separate microchips to its F-series printers to slow them down and sell them as E-series printers for a lower price
How could any firm justify adding extra costs to production for a good that will carry a lower price tag?
The increase in the cost of doing so must have been less than the increased revenue associated with the higher sales from a lower-priced model. This of course is a simple case of price discrimination.
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Refer to the figure above. When the demand curve for flash drives is D and the supply curve of flash drives is S1, what is the surplus in the market if the price is $7?
A) 10 units B) 20 units C) 50 units D) 60 units
Which of the following is a behavioral implication of bounded rationality?
A) unbounded selfishness B) a rule of thumb C) a rational mistake D) a nervous breakdown
If a country had a trade deficit of $20 billion and then its exports rose by $7 billion and its imports fell by $10 billion, its net exports would now be
a. $37 billion b. $3 billion c. -$3 billion d. -$37 billion
St. Charles Hospital, located in an upper-income neighborhood of a large city, recently received a restored mansion as a gift from an appreciative patient. The board of directors decided to remodel the mansion and use it as recuperative quarters for patients willing to pay for luxurious accommodations. The cost to the hospital of using the mansion includes
A. nothing because it was a gift. B. how much the hospital pays for upkeep--taxes, insurance, utilities, maintenance, etc. C. how much the hospital would receive if it rented or sold the mansion. D. both b and c