A hotel with market power charges customers who check in before 5:00 pm more than those who check in after 5:00 pm. Those who check in early are much more likely to use the hotel's pool. Explain why this price difference may not be price discrimination
What will be an ideal response?
The marginal cost of providing a hotel stay to those who check in early may be greater than the marginal cost of providing a stay to those who check in after 5:00 pm. Those who check in early are more likely to use more towels, soap, shampoo, bathing caps, etc., than those who arrive after 5:00 pm. The difference in costs may explain the hotel price differences.
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Which one of the following is not an accurate description of the activities in which labor unions engage?
A) Control competition among workers for jobs. B) Encourage consumers to purchase union-made products exclusively. C) Enforce seniority criteria when employers are contemplating layoffs. D) Help workers compete against corporate employers. E) Protect workers against arbitrary treatment by management.
Consider a good that you do not like at all, perhaps turnips. Given the market price for turnips, what would be your consumer surplus?
What will be an ideal response?
The definition of M1 includes:
A. cash and checking account balances. B. hard money and savings account balances. C. cash and savings account balances. D. cash, checking accounts, savings accounts, and other financial instruments where money is locked away for a specified period of time.
Which of the following is an accurate description of the aggregate demand curve?
a. It is the sum of all individual demand curves for all products b. It shows all price levels at which firms' unit costs equal their percent markups. c. It is the curve decided upon by the voters. d. It shows the relationship between firms' unit costs and their percentage markups. e. It shows the equilibrium level of GDP associated with price level.