How does a company arrange to sell its products to people who are unwilling to pay the top price for them?
a) by allowing rebates to some preferred customers who buy a lot of goods
b) by charging each customer the maximum amount they are willing to pay
c) by charging different prices according to the group to which the buyer belongs
d) by changing the product and selling a lesser one to people who are unwilling to pay for the top product
Answer: c) by charging different prices according to the group to which the buyer belongs
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In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A) money wage rate is fixed. B) quantity of capital is fixed. C) full-employment level of employment is fixed. D) price level is fixed.
When the cost curves have the usual shapes, at the point where marginal cost equals average total cost,
a. average total cost is at its maximum b. marginal cost is falling c. average total cost is at its minimum d. average variable cost is falling e. the fixed cost has been fully depreciated