Songwriters and composers press music companies to lower the price for music downloads because
a. demand for on-line music is inelastic
b. profits are maximized where price elasticity of demand is -1.0
c. songwriter royalties are a percentage of sales revenue
d. profits and total revenue are maximized at different quantities
e. profits are maximized at the same prices as sales revenue
c
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Which of the following is an example of a compensating differential?
a. Two workers with different undergraduate majors earn different salaries. b. Two workers with different years of experience earn different salaries. c. Two workers whose jobs entail different risks earn different salaries. d. Two workers with different levels of personal attractiveness earn different salaries.
Consider the following payoff matrix facing Harry and Sally when each chooses to go to the coffee shop listed. Harry wants to avoid Sally at the coffee shop and is not happy when Sally ends up in the same shop he chooses. Sally would like to see Harry, and so she is not happy when Harry ends up in a different coffee shop. Harry StarbucksDunkin DonutsSally StarbucksH: ?1, S: 1H: 1, S: ?1 Dunkin DonutsH: 1, S: ?1H: ?1, S: 1Assuming that Sally and Harry go to the coffee shop each day, what is Harry's best strategy?
A. Go to Starbucks one day and Dunkin' Donuts the next and maintain that pattern. B. Go to Starbucks because Sally won't go there. C. Go to Dunkin' Donuts because Sally won't go there. D. Randomly choose between going to Starbucks and going to Dunkin' Donuts.