Describe how a firm that sells only one brand of bleach may be able to increase its profit if it re-labels some of its bleach
What will be an ideal response?
The firm could sell the same bleach under more than one brand name. Then, as long as some customers believe that two different labels contain different quality bleach, the firm could price discriminate and increase its profit.
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Traffic congestion is an example of a ________
A) positive externality B) negative externality C) pecuniary externality D) free-rider problem
In theory, differences in output across economies and over time might be the result of differences in either capital input, labor input, or productivity
The evidence points clearly to productivity as a more likely and powerful source of growth differences. Which aspects of the Solow growth model help to explain why the inputs of capital and labor contribute little to growth of output, relative to productivity?