One way sellers can credibly signal that they have a high-quality product is to:
A. sell very little of their product in order to create scarcity.
B. spend a lot of money on advertising.
C. simply tell buyers more about their product.
D. lower their marginal cost of production.
Answer: B
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The price of a given basket of goods in Richland is 75 ritz. If the same basket of goods cost $10 in the U.S., the price of a basket of goods worth $1 in the U.S. is ________
A) 0.13 ritz B) 1 ritz C) 7.5 ritz D) 1.5 ritz
Other things remaining the same, which of the following is likely to decrease both the wage rate and the number of workers hired in a tea estate?
A) An increase in the price of tea B) A decrease in the price of tea C) A decrease in the opportunity cost of leisure D) An increase in the opportunity cost of leisure
Refer to Table 13-5. What are the firm's profit-maximizing or loss-minimizing price and quantity?
A) price = $12; quantity = 4. B) price = $10; quantity = 5. C) The firm should shut down temporarily. D) This cannot be determined from the information given.
Sales contracts between developed countries are usually written (invoiced) in the national currency of the exporter
a. True b. False Indicate whether the statement is true or false