Which of the following would be an economic explanation of how "99¢ pricing" was developed?
a. It was a sales gimmick that sellers used to try to fool their customers.
b. It was encouraged by a penny newspaper to increase the number of pennies in circulation.
c. It was a scheme to let firms advertise that their prices were under some round dollar figure.
d. It was a way of ensuring that sales were recorded on cash registers, thus reducing employee theft.
d. It was a way of ensuring that sales were recorded on cash registers, thus reducing employee theft.
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Indicate whether the statement is true or false
A major difference between a single-price monopolist and a perfectly competitive firm is that the
A) monopolist can maximize profit by setting the price of the output where demand is inelastic. B) monopolist can always increase its profits by increasing the price of its output. C) monopolist's marginal revenue is less than price. D) monopolist is guaranteed to earn an economic profit.
If by purchasing more apples and fewer oranges you increase your total utility, then apples must be cheaper than oranges
Indicate whether the statement is true or false
The offsetting effect of private saving compared to __________ borrowing is much less than one-to-one.
a. private b. government c. corporate d. international