Spending a lot on advertising:
A. can act as a credible signal to consumers of high-quality products.
B. can act as a credible signal to producers to create high quality substitutes.
C. does not serve as a credible signal to consumers, since any producer can do it.
D. can act as a credible signal to consumers of low-quality products.
A. can act as a credible signal to consumers of high-quality products.
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Successful adjustment to external imbalance is likely to involve
a. expenditure-reducing policies b. expenditure-switching policies c. import compression d. devaluation of the national currency e. all of the above
The correct expression for cost plus pricing is
A) Price = Cost (1 + profit margin). B) Price = Cost + profit margin. C) Price = Cost (1 + mark-up). D) Price = Cost + (1 + mark-up).
How is the market for gasoline affected if the excise tax on gasoline is reduced?
A) The supply of gasoline decreases. B) The supply of gasoline increases. C) The equilibrium quantity of gasoline decreases. D) The equilibrium price of gasoline increases.
Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability .If three bidders show up at the auction, and two of the bidders are high-value, what would the winning price be?
a. Just above $100 b. $100 c. Just above $70 d. $70