Would the shopkeeper be able to convince the customer that he would usher the customer out if he gets a low price?
a. Yes, such threats are always credible
b. No, because losing the sale is not in the shopkeeper's best interest
c. No, because he would get more by accommodating the low price than losing the sale
d. Both B&C
d
Economics
You might also like to view...
If the federal government replaced the current income tax with a value-added tax
A) the prices of Treasury and municipal bonds would rise. B) the prices of Treasury and municipal bonds would fall. C) the prices of Treasury bonds would rise, while the prices of municipal bonds would fall. D) the prices of Treasury bonds would fall, while the prices of municipal bonds would rise.
Economics
In regulated industries, the optimal regulation is to set price such that MC=P
a. True b. False Indicate whether the statement is true or false
Economics