According to the U.S. Robinson-Patman Act of 1936, price discrimination A) is always illegal. B) is legal unless it harms competition. C) may be used to drive rivals out of business. D) can only be justified if the price discrimination is due to actual cost differences. ANSWER B
Date: September 9th, 2020
Usury laws result in banks making less credit available to lower-income households because A) higher-income households will pay a higher interest rate than lower-income households. B) loans made to higher-income households have no risk. C) loans to lower-income households are riskier than loans to higher-income households. D) the regulated interest rate does not adequately compensate […]
Date: September 9th, 2020
A firm observes that in order to minimize the average cost, it must produce 25,000 units of output. Suppose the government imposes a specific tax on the output of the firm. Will the output level required to minimize the average cost increase, decrease, stay the same or is it uncertain? Can you tell how much […]
Date: September 9th, 2020
Future benefits for Social Security will ultimately be determined by _____. a. population growth b. individual decisions on when to retire c. the existence of private accounts d. voters through the political process ANSWER d
Date: September 9th, 2020
The use of a dummy variable in regression analysis indicates A) that a researcher does not really know what to include in the equation. B) that a categorical variable is expected to have an impact on a dependent variable. C) that insufficient data is available for the analysis. D) the use of hypothetical data. […]
Date: September 9th, 2020
Consider a market with inverse demand p = 100 2Q. Firms have no fixed cost and constant marginal cost c. a. Derive the firms’ outputs and profits when this market is served by Cournot duopolists. b. How do outputs and profits vary with c? Specifically, use calculus to find the derivative of the output […]
Date: September 9th, 2020
Microsoft has integrated many components into its Windows operating systems, such as a web browser, media player, etc. How might this be an example of nonprice competition? What will be an ideal response? ANSWER There are a number of possible answers, including enhancing the attributes of the product (increasing demand), increasing switching costs to […]
Date: September 9th, 2020
Without usury laws, banks will A) charge very high interest rates to all borrowers. B) charge higher interest rates to riskier borrowers than to safer borrowers. C) charge very low interest rates to all borrowers. D) face no demand for loans. ANSWER B
Date: September 9th, 2020
Opportunistic behavior may occur when A) a firm buys its inputs from multiple suppliers. B) firms incur significant transaction costs when negotiating contracts. C) a firm backwards vertically integrates. D) a firm can buy a key component from only one supplier. ANSWER D
Date: September 9th, 2020
Designing your products with proprietary technology, is a way to A) protect intellectual property. B) increase switching costs for your customers. C) grandfather in your products. D) decrease your marginal cost. ANSWER B
Date: September 9th, 2020
