Answer the following statements true (T) or false (F)
1) In the situation in which consumers have nonidentical demands in two-part pricing, the profit-maximizing user fee is equal to the marginal cost of use.
2) In the situation in which consumers have nonidentical demands in two-part pricing, a firm's profit is always increased if it adjusts the access fee and user fee to sell to all consumers.
3) In all-or-nothing offers, the products packaged together are all the same.
4) If Pasta Meals sells its pasta and pasta sauce in a package and sells the products individually, this is an example of pure bundling.
5) Commodity bundling can increase a firm's profit and lower their transaction costs.
1) FALSE
2) FALSE
3) TRUE
4) FALSE
5) TRUE
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When buying a car from a commission salesman you improve your bargaining position by
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If interest rates in Europe fall below interest rates in the United States, then, other things equal, the demand for euros will decrease
a. True b. False Indicate whether the statement is true or false