Harry's HVAC sells its new units bundled with after sales service. Why would it want to do that?
a. To ensure that the customer knows that they are stuck with Harry's service technicians
b. To ensure that only the highest paid personnel get to service the units
c. To ensure that the customers do not buy second-class servicing and then infer faulty design if a unit breaks down due to inadequate service
d. All of the above
c
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Governments can do which of the following to increase productivity?
A. use tax revenues to invest in physical capital. B. will defund underlying infrastructure. C. creating new taxes for investing in physical capital. D. reduce spending on higher education.
When economists refer to the economy’s self-correcting mechanism, they are referring to the fact that the
A. economy will react automatically to a recessionary gap through inflation. B. economy will react automatically to an inflationary gap through deflation. C. economy will react automatically to an inflationary gap through inflation. D. simple multiplier is greater than the complex multiplier.
The M1 measure of the money supply equals
A) paper money plus coins in circulation. B) currency plus checking account balances. C) currency plus checking account balances plus traveler's checks. D) currency plus checking account balances plus traveler's checks plus savings account balances.
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. If Fun Cable Company were to be awarded the exclusive right to provide cable service in Stratospheria,
what price would it charge per household per month? A. $5.00 B. $27.50 C. $30.00 D. $55.00