Jim is haggling with a car dealer on the price of a used car. If the dealer is getting a bonus per sale made, in addition to the commission, Jim is more likely to be able to
a. Get the car cheap
b. Pay a higher price for the car
c. Walk away from the deal
d. All of the above
a
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If the banking system has a required reserve ratio of 40 percent, then the money multiplier is
A) 2. B) 2.5. C) 4. D) 8.
To draw the consumption possibilities curve for a particular nation you need to know the output of the good for which the nation has a comparative advantage and the terms of trade
Indicate whether the statement is true or false
A government policy of providing free public K-12 education is most consistent with
A) Pareto-efficiency. B) the First Theorem of Welfare Economics. C) the Second Theorem of Welfare Economics. D) the contract curve.
If a monopoly charges higher prices to consumers who buy smaller quantities than to consumers who buy larger quantities, then
A) consumer surplus is larger than under single-price monopoly. B) social welfare is larger than under perfect competition. C) the monopoly's profits are larger than under single-price monopoly. D) the monopoly's profits are larger than under perfect price discrimination.