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Question
Marge's Beauty Salon sells shampoo and conditioner. Marge has two types of customers. Their willingness-to-pay for shampoo and conditioner are given in the table below. If Marge bundles the shampoo and conditioner, could she increase revenue?| Shampoo | Conditioner | |
| Type I | 8 | 5 |
| Type II | 6 | 8 |
Answer
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Related questions
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Q:
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B) NPV is understated
C) NPV is unaffected
D) NPV changes from positive to negative
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For net present value calculations, the rate of return that one could earn by investing in another project with similar risk is known as the:
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B) nominal interest rate.
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If the inflation rate falls and nominal interest rates are unchanged,
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Q:
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Q:
The real interest rate is
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Q:
The first term in an NPV calculation is usually
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Q:
The "NPV Criterion" is that a firm should invest in a new capital project if
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Q:
Which of the following is NOT a factor that has contributed to declining private-sector differential between union and nonunion wages in the U.S. since 1980?
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Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and both groups of workers initially earn the perfectly competitive wage. What happens to the equilibrium employment level and wage for union workers if the union exercises its bargaining power?
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Q:
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Q:
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Q:
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Q:
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B) Everyone
C) The last factor of production hired
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Q:
Scenario 14.4:
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TP = 100L - 0.125L2 MP = 100 - 0.25L
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A) Marginal product of labor
B) Marginal revenue product of labor
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Q:
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Q:
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Under an upward sloping supply curve for land, the economic rents to land ________ as the demand for land shifts rightward.
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D) We do not have enough information to answer this question.
Q:
Which of the following is NOT true about the supply of labor to the firm in a competitive labor market?
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D) It is upward sloping.
Q:
Use the following statements to answer this question:
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D) I and II are false.
Q:
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Q:
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Q:
The Acme Company is a perfect competitor in its input markets and its output market. Its average product of labor is 30, the marginal product of labor is 20, the price of labor is $20, and the price of the output is $5. For Acme Company, the marginal revenue product of labor
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Q:
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C) should not use this factor of production because it has no potential in generating a profit.
D) can increase profit by expanding the employment of the factor of production.
Q:
An increase in technology that enhances labor productivity will likely result in:
A) a decrease in labor employment and an increase in the wage rate.
B) an increase in labor employment and an increase in the wage rate.
C) a decrease in labor employment and a decrease in the wage rate.
D) an increase in labor employment and a decrease in the wage rate.
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Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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B) increase the number of hours worked.
C) decrease the number of leisure hours.
D) increase the sum of leisure plus hours worked.
Q:
The marginal revenue product can be expressed as the
A) additional revenue received from selling one more unit of product.
B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.