Customers are usually more willing to pay more for the first unit of a good they purchase than for the second, third, or subsequent units. This implies that
A) typical consumers are irrational.
B) firms are using non-linear price discrimination.
C) firms are unable to determine their customers' reservation prices.
D) typical consumers have a downward sloping demand curve.
D
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Tests of the Heckscher-Ohlin model by Bowen, Leamer, and Sveikauskas and by Maskus continue to
A) provide strong support for the theory. B) provide weak support for the theory. C) provide evidence against the theory.
Consider the game between the teens from the previous question. In addition to any pure-strategy Nash equilibrium, there is another one in mixed strategies. In it, each teen chooses to declare with probability
a. 0.52 b. 0.5 c. 0.34 d. 0.1
The supply curve of reserves has two kinks in it: one at the _________________ and the other at the ____________________ rate
A) interest rate that the Fed pays on reserves; discount B) federal funds rate; discount C) prime rate; discount D) discount rate; federal funds rate
The ratio of the total amount of demand deposits at a bank to the amount kept as cash reserves is known as the:
A. reserve ratio. B. demand-reserve ratio. C. federal funds rate. D. demand deposit ratio.