If the demand for a newly released novel is less price-elastic than the demand for an older novel, which of the following pricing strategies would a price-discriminating publishing firm follow?
A. Charge a higher price for older novels.
B. Sell newly released novels and older novels for the same price.
C. Set price according to the marginal cost of printing the novels.
D. Charge a higher price for newly released novels.
Answer: D
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The consumption function is relationship between consumption and:
A. total spending. B. investment. C. aggregate expenditure. D. disposable income.
A monopolist that practices perfect price discrimination
a. creates no deadweight loss. b. charges one group of buyers a higher price than another group, such as offering a student discount. c. charges a higher price but produces the same monopoly level of output as when a single price is charged. d. charges some customers a price below marginal cost because costs are covered by the high-priced buyers.
Answer the following statement(s) true (T) or false (F)
1. Economic growth is typically measured in terms of real GDP per capita. 2. A slight difference in economic growth rates between two countries generally results in only minor differences in wealth in the long term. 3. A rise in productivity usually results in a higher standard of living. 4. A country that is increasing its rate of consumption is reducing its level of production. 5. The four factors that determine productivity and economic growth are natural resources, human capital, physical capital, and technology.
Answer the following statement(s) true (T) or false (F)
1. A job loser is a person who quits his or her job. 2. Frictional unemployment is a persistent problem for the U.S. economy. 3. It is possible for the number of unemployed workers in an economy to equal the number of job vacancies. 4. Certain types of unemployment are unavoidable. 5. The natural rate of unemployment occurs when the economy is functioning at optimum levels.