Some firms practice odd pricing because
A) it is a way to price discriminate.
B) it is too difficult for sellers to reeducate buyers into accepting even prices.
C) it lowers transactions costs.
D) they believe that customers will buy a larger quantity with an odd price.
D
You might also like to view...
Earth Movers & Shakers operates 3 iron ore mines. The table below shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total TonsPer DayNumber ofMinersMother Lode10025Scraping Bottom3010Middle Drift7515Suppose Earth Movers & Shakers needs to fill an order for 60 tons of ore in a single day. If it has no other orders for that day, it should:
A. take 30 tons from Scraping Bottom and 30 tons from Middle Drift. B. take it all from Middle Drift. C. take 20 tons from each of the three mines. D. take it all from Mother Lode.
Which of the following describes a characteristic of a perfectly competitive market?
A) Equilibrium is achieved when demand for the product sold in the market equals the supply. B) There are many buyers and sellers. C) There are many sellers but few buyers. D) There are many buyers but few sellers.
A right-to-work state is one in which
A) unions are illegal. B) there is guaranteed employment for all citizens. C) the union shop is prohibited. D) the closed shop is permitted.
A monopolist
A. faces a demand curve that is more elastic than the demand curve for the industry. B. is constrained in its pricing decisions by the demand curve it faces. C. can charge whatever price it wants because it is the only firm producing the good. D. can usually keep price equal to marginal revenue by lowering the price on the last unit sold only.