Most companies that sell CDs by mail deliver in 1 to 2 weeks. Mosey Music, Inc, takes 4 weeks to deliver CDs. We should expect that Mosey Music
a. will lose all its customers
b. will not lose customers because the good in question is CDs, not the delivery date
c. will have to charge more for its CDs to make up for the business it loses through slow delivery
d. will have to charge less for its CDs to compete with firms that deliver CDs faster
e. will be able to charge the same amount for its CDs as other firms do, as long as the CD quality is the same
D
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If the total utility derived from consuming three oysters was 40 utils and the total utility derived from consuming four oysters was 62 utils, what was the marginal utility derived from the consumption of the fourth oyster?
A) 102 utils B) 62 utils C) 22 utils D) It is impossible to determine.
When supply for an item is perfectly inelastic, how does the supply change when there is a steep drop in price?
a. increases b. decreases c. does not change d. is eliminated