4. All of the following are example of entry barriers, except
a. Government protection through pattern or licensing requirements.
b. Strong brands
c. Low capital requirements for entry
d. Lower costs driven by economies of scale
7. If a firm successfully adopts a product differentiation strategy, what should happen to the elasticity of demand for its product?
c. Become unit elastic
d. Is unaffected
10- 6 Salons and Teeth Whitening
Salon owners have recently started offering teeth whitening services to clients in addition to their more standard services. In a number of states, regulators have ordered the salon owners to stop, claiming that this service ...view middle of the document...
b. The dollar would depreciate relative to the peso, and Mexican prices would decrease.
c. The dollar would depreciate relative to the peso, and Mexican prices would increase.
d. The exchange rate would not be affected, and neither would Mexican prices.
11- 3 Evaluating Appreciation
Explain how both Japanese consumers and producers would view an appreciation of the Japanese yen versus the U. S. dollar.
If the Japanese yen appreciates over, the U.S. firm converted yen to dollar value at a lower exchange rate than the rate at which it paid for yen at the time. This resulted in an affect by appreciation. Its cost of borrowing will be higher. Consumers will spend less and producers will spend more on products.
1. After massive promotion of Justin Bieber’s latest music album, the producers reacted by raising prices for his albums. This implies that promotion expenditures made the album demand
a. More elastic.
b. Unitary elastic.
c. The change is due to psychological pricing.
d. Less elastic.
5. After firm A producing one good acquired another firm B producing another good, it raised the prices for the bundle of goods. One can conclude that the goods were
c. Not related.
d. None of the above
12- 3 App Pricing for Droids
Every week, more and more apps (applications) are available for Droid- based smart phones. How does this affect the optimal price for Droid- based smart phones?
This positively increases the revenue of the droid based phone. We are trying to get to the point where MR=MC. The optimal price is being maximized when the revenue is greater than the cost; the revenue is greater than the cost of the phone as applications are being available on a weekly basis.
5. What is the total profit to the monopolist from selling the goods separately?