Outlet Malls Coach Handbags sells its purses through traditional department stores and specialty shops. But it sells discounted bags through "Coach Brand" shops at outlet malls. Why does it own the outlet mall stores but not the stores at the traditional department stores and specialty shops?
Coach is trying to engage in price discrimination - selling the same model bag at different prices to different customer groups. It could offer lower wholesale prices to "third-party" discount stores in outlet malls. But if it did, it would worry that these stores would turn around and sell the bags to the department stores and specialty shops and arbitrage away the price differences.
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When a consumption schedule is plotted as a straight line, the slope of the consumption line is
A. horizontal. B. vertical. C. greater than the slope of the 45º line. D. less than the slope of the 45º line.
Suppose that 1000 identical sellers each set their profit-maximizing output level at 18 units when price equals $10 . Then what is market quantity supplied at a price of $10
a. 100. b. 1,000. c. 10,000. d. 18,000.
Which of the following statements was probably made by an adherent of rational expectations? a. It is rational to pursue any full employment policy because more employment is better than less
b. Unemployment is clearly a case of market failure. c. Programs designed to stimulate employment will only stimulate the price level with no employment gain. d. It is inhumane to have a single person unemployed whatever the inflation cost.
From 2004 to 2008, the federal budget deficit, on an official fiscal-year basis, was
A. large and growing larger. B. “negative,” that is, the budget was in surplus. C. declining. D. increased by the rising Social Security deficit.