Mechanisms that manufacturers can use to deal with misaligned retailer incentives include
a. setting a maximum retail price
b. allowing many retailers to sell the product in each market
c. compensating retailers' sales staff for demonstrating the product
d. eliminate manufacturer staff that was demonstrating the product in stores
c
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Which of the following will shift the demand curve for a good?
A) a change in the technology used to produce the good B) a decrease in the price of a complementary good C) an increase in the price of the good D) a decrease in the price of the good
If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is
A) a complement. B) a necessity. C) a normal good. D) a neutral good.
Separate standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize.
When a positive externality exists, the market is said to fail because it overproduces the good associated with the positive externality.
Answer the following statement true (T) or false (F)