Price-matching strategies may fail to enhance profits when:

A. firms cannot prevent customers from making deceptive claims or firms have different marginal costs.
B. firms cannot prevent customers from making deceptive claims.
C. firms have different marginal costs.
D. None of the statements are correct.


Answer: A

Economics

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Excess reserves are the

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If it costs Hobie $900 to produce 5 lamps and $1,200 to produce 6 lamps, then the difference of $300 is the marginal cost of producing the 5th lamp

Indicate whether the statement is true or false

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Which of the following is most likely a fixed cost? a. Raw materials costs

b. Shipping charges. c. Property insurance premiums. d. Fuel costs for running the factory.

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Refer to the table. The profit-maximizing monopolist will sell at a price:



Answer the question on the basis of the following table showing the demand schedule facing a nondiscriminating monopolist:

A.  of $10.
B.  of $7.
C.  of $5.
D.  that cannot be determined with the information provided.

Economics