Question :
89) The term “early adopters” refers to
A) firms that : 1387946
89) The term “early adopters” refers to
A) firms that are the first to implement a new technology that is used to produce new goods or services.
B) book clubs that are first to recommend best-selling books to their members.
C) consumers who respond quickly to fads, seasonal changes, etc.
D) consumers who are willing to pay high prices to be among the first to own new products.
90) Consumers who will pay high prices to be among the first to own certain new products are called
A) savvy consumers.
B) naive consumers.
C) gullible.
D) early adopters.
91) Which of the following antitrust laws forbade firms to engage in price discrimination if the effect would lessen competition or create a monopoly?
A) the Sherman Act
B) the Clayton Act
C) the Robinson-Patman Act
D) the Cellar-Kefauver Act
92) Clarissa Kessler operates a store that sells recorded music. Her business suffered tremendously when a giant discount store chain opened a store in the area and is able to sell its products for less than Clarissa’s wholesale cost. Is this evidence of illegal price discrimination on the part of the discount store chain?
A) Yes, it is clearly a violation of the Robinson-Patman Act.
B) No, because it can be argued that the discount store chain is justified in charging lower prices because it is a large-volume buyer and is able to purchase recorded music at a lower wholesale price than Clarissa.
C) Yes, the discount store chain is engaging in predatory pricing.
D) No, even if the price discrimination is based on differences in cost, the law states that it is not illegal.
Table 16-3
Potential Customer
Willingness to Pay (dollars per hour)
Arun
$8
Bernice
9
Cara
10
Dawn
12
Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.
93) Refer to Table 16-3. If Julie charges $10 per hour, how many hours of pet sitting services will be purchased and by whom?
A) 2 hours (1 hour by Cara and 1 hour by Dawn)
B) 1 hour by Cara only
C) 1 hour by Dawn only
D) 3 hours (1 hour each by Arun, Bernice and Cara)
94) Refer to Table 16-3. If Julie charges $10 per hour, what is the value of the consumer surplus received by Dawn?
A) $2
B) $10
C) $12
D) $22
95) Refer to Table 16-3. Suppose Julie’s marginal cost of providing this service is constant at $7 and she charges $7. How many hours will be purchased and what is her total revenue?
A) 5 hours; total revenue = $35
B) 4 hours; total revenue = $28
C) 3 hours; total revenue = $21
D) 2 hours; total revenue = $14
96) Refer to Table 16-3. Suppose Julie’s marginal cost of providing this service is constant at $7 and she charges $7 per hour. What is her marginal revenue?
A) It is $7 for the first hour and starts declining thereafter.
B) It is $7 for the first hour and starts increasing thereafter.
C) It is constant at $7.
D) It coincides with the figures in the table; $12 for the first hour, $10 for the second, $9 for the third and $8 for the fourth.
97) Refer to Table 16-3. Suppose Julie’s marginal cost of providing this service is constant at $7 and she charges $7. What is the value of the consumer surplus enjoyed by her customers?
A) $39
B) $28
C) $11
D) $0
98) Refer to Table 16-3. Suppose Julie’s marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay. What is Julie’s total revenue and how many hours of service will be purchased?
A) 4 hours and her total revenue = $39
B) 4 hours and her total revenue = $28
C) 1 hour and her total revenue = $7
D) 5 hours and her total revenue = $35
