Consumers demand different features from cough medications taken for daytime use versus nighttime use. Drug companies conveniently package both medications together. This strategy is designed to
a. Allow consumers to buy the two together
b. Stop consumers from buying each medicine separately
c. Make the consumers more homogenous so that maximum consumer surplus can be extracted with a single price
d. None of the above
QUESTION 2If the price is 110 per unit, what is the break even amount of units for technology B?
a. 20
b. 25
c. 30
d. None-They would have to shut down
QUESTION 3For a retailer buying from a wholesaler, volume discounts do not violate the Robinson-Patman act because
a. To sell larger volumes, the retailer himself has to offer discounts
b. To sell larger volumes, the retailer has to incur costs in promoting the item
c. To sell larger volumes, the retailer has to hold the items in inventory longer
d. All of the above
QUESTION 4If the price is 60 per unit, what is the break even amount of units for technology A?
a. 50
b. 100
c. 150
d. None-They would have to shut down
QUESTION 5One reason demand curves slope downwards is
a. Marginal value increases with each purchase
b. Marginal value declines with each purchase
c. Total value declines with each purchase
d. All of the above
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