A monopoly will always sell rather than rent its product
Indicate whether the statement is true or false
F If the product is durable, consumers may fear the monopolist who sells it will keep lowering the price, causing the value of their purchase to decline. So they may refuse to buy. If the monopolist rents, this avenue of lowering price to discriminate is no longer an option in that the monopoly will suffer any negative effects of doing so. Consumers realize this and by renting the monopolist may win their business.
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The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.
A simplified representation of a complicated situation is:
A. cutting corners. B. a model. C. useless without adding fine details. D. econometrics.
In the short run, consumers typically ____ to price changes (when compared to the long run)
a. are very responsive b. are more demand sensitive c. are less demand sensitive d. do not respond at all e. overreact
The multiplier principle is built on the premise that one person’s spending is another person’s
A. debt. B. obligation. C. income. D. saving.