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Question
Table 16-1| COMPANY | PRICE |
| Amazon.com | $14.09 |
| BarnesandNoble.com | 16.82 |
| Walmart.com | 14.09 |
| Rakuten.com | 19.06 |
Table 16-1 shows the price for the hardcover version of the novel Inferno by Dan Brown at four online bookstores.
Refer to Table 16-1. Which of the following can one conclude from the data above?
A) The data provides clear evidence of price discrimination in online bookstore market.
B) Amazon.com and Walmart.com are able to charge a lower price for the item because they are more cost efficient than the other two companies.
C) The item offered for sale is similar but not identical; the quality of service and delivery time might vary from store to store, which justifies the price differences.
D) Walmart.com and Amazon.com have deliberately under-priced their product to force the other two companies out of business.
Answer
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Related questions
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Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
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B) its revenue increases.
C) its input price ratio increases.
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B) the relative input prices.
C) the slope of the isocost line.
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The typical shape of an isoquant is
A) convex towards the origin.
B) concave towards the origin.
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D) linear and upward sloping.
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An expansion path shows
A) the level of sales necessary for a firm if it wants to expand.
B) the level of long-run average cost at different scales of operation.
C) the least-cost combination of inputs for each level of output.
D) the returns to scale at each level of output.
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Maximizing the level of output for a given total cost of production
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B) is equivalent to minimizing cost for a given level of output.
C) necessitates using only relatively low-priced inputs.
D) will maximize total revenue.
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B) $70,000
C) $42,000
D) $41,500
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Which of the following would be categorized as an opportunity cost?
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b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above