Why are quantity discounts an effective form of price discrimination?
a. Willingness to pay drops as more units are purchased.
b. Willingness to pay increases as more units are purchased.
c. Willingness to pay remain unchanged as more units are purchased.
d. Willingness to pay is similar for all customer groups.
a. Willingness to pay drops as more units are purchased.
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Which of the following is NOT a cost of inflation?
A) uncertainty cost B) confusion cost C) tax cost D) unemployment cost E) shoe-leather cost
Prisoners Dilemma show
a. Rational choices lead to bad outcomes b. Rational choices lead to good outcomes c. That there are no ways to learn where the pitfalls lie d. None of the above
Suppose a production possibilities frontier (PPF) has been plotted on a graph. If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods, then a point inside the PPF represents: a. a larger quantity of capital goods than that represented by a point along the PPF. b. an inefficient output combination of the two goods in
the economy. c. an unattainable output combination of the two goods in the economy. d. an output combination of more consumer goods than capital goods. e. a larger quantity of consumer goods than that represented by a point along the PPF.
Refer to the information provided in Table 24.5 below to answer the question(s) that follow.Table 24.5All Numbers are in $ Million
Refer to Table 24.5. The MPC in this economy is ________ and the MPS is ________.
A. 0.5; 0.5 B. 0.9; 0.1 C. 0.8; 0.2 D. 0.7; 0.5