If demand facing the firm is price-inelastic, marginal revenue will be:

If demand facing the firm is price-inelastic, marginal revenue will be:
 a. positive.
  b. zero.
  c. negative.
  d. constant.

QUESTION 2

Second-degree price discrimination:
 a. is also known as block rate setting
  b. is imperfect in the eyes of a monopolist
  c. is regularly practiced by public utilities
  d. is effective only in the case of services or products which are sold in easily metered units
  e. all of the above

QUESTION 3

When buying a car from a commission salesman you improve your bargaining position by
 a. shopping when the new model year cars have just arrived
  b. shopping when the showroom is full of customers
  c. shopping when the car lot has few cars left unsold
  d. shopping toward the end of the month

QUESTION 4

In order to maximize profits, a firm should produce at the output level for which:
 a. average cost is minimized.
  b. marginal revenue equals marginal cost.
  c. marginal cost is minimized.
  d. price minus average cost is as large as possible.

QUESTION 5

Which of the following pricing policies best identifies when a product should be expanded, maintained, or discontinued?
 a. full-cost pricing policy
  b. target-pricing policy
  c. marginal-pricing policy
  d. market-share pricing policy
  e. markup pricing policy

QUESTION 6

Which of the following will improve your supplier contracting bargaining position
 a. You have a policy of always excluding at least one potential competing supplier
  b. You have a policy of increasing product options by never excluding a potential supplier
  c. Two of your suppliers merge
  d. Your final product that includes this component becomes more profitable