Which of the following product pairs would NOT be good candidates for price discrimination through tying?
A) Razors and razor blades
B) Ink-jet printers and ink cartridges
C) Pencils and paper
D) Cellular telephones and cell phone service
C
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La Bella Pizza is the only pizza place on Pepper Island. The figure above shows La Bella Pizza's demand curve, marginal revenue curve, and marginal cost curve. At La Bella Pizza's profit-maximizing output, its annual total revenue is
A) $168,000. B) $312,000. C) $336,000. D) $624,000.
Internalizing a negative externality means _____
a. changing the incentives of consumers to ignore the externality b. changing the incentives of producers to act as if there were no market for the external cost c. changing the incentives of producers to act as if there were a market for the external cost d. changing the incentives of consumers to complain about the externality to the producers