Question : 31) Which of the following does not arise from price : 1387940

31) Which of the following does not arise from price discrimination?

A) an increase in producer surplus

B) an increase in consumer surplus

C) an increase in quantity sold

D) an increase in profits

32) Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss’s time is $1,200. Assume that Iris and Daphne do not know each other. If Joss charges the same price per copy to both Iris and Daphne,

A) the report will not get written.

B) only Daphne will commission the job and the report will be written.

C) both Iris and Daphne will commission the job and the report will be written.

D) no conclusion can be drawn without information on the price.

33) Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss’s time is $1,200. Assume that Iris and Daphne do not know each other. If the price is $500 per copy,

A) only Iris will purchase Joss’s services and Joss will undertake the job for her.

B) only Daphne will purchase Joss’s services and Joss will undertake the job for her.

C) both Iris and Daphne will purchase Joss’s services and Joss will undertake the job.

D) both Iris and Daphne will want to purchase Joss’s services but Joss will not be willing to undertake the job.

34) Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss’s time is $1,200. Assume that Iris and Daphne do not know each other. If the price is $800 per copy,

A) both Iris and Daphne will purchase Joss’s services and Joss will undertake the job.

B) only Daphne will purchase Joss’s services and Joss will undertake the job for her.

C) only Daphne will want to purchase Joss’s services but Joss will not be willing to do the work.

D) neither Iris nor Daphne will commission the work.

35) Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss’s time is $1,200. Assume that Iris and Daphne do not know each other. Which of the following statements is true?

A) Joss should charge each customer $600; that way he will earn his opportunity cost and it will be fair to both Iris and Daphne.

B) Joss should charge Iris $500 and Daphne no more than $700; that way he earns his opportunity cost and there is no loss in economic surplus.

C) Joss should charge Iris $500 and Daphne $800; that way economic surplus is maximized.

D) Joss should charge Iris $500 but charging Daphne $800 is unfair because it allows Joss to earn more than his opportunity cost.

36) Reporters from the Wall Street Journal found that the office supply store Staples charged different prices for the same product to different online customers based primarily on

A) the age of the customer.

B) how close the customer’s zip code was to competitors’ stores.

C) the gender of the customer.

D) how many times the customer had looked up the product on its Website.

37) Online companies gather personal information about the customers who shop on their Websites and some of those companies will use the data to estimate price elasticities of the customers. Doing this is a way that these companies might be able to charge a higher price for a product to those customers who have a ________ price elasticity of demand.

A) high

B) low

C) negative

D) unitary

38) Some consumer electronic products such as plasma TVs, DVD players and digital cameras, are introduced at very high prices but over time, their prices start falling (beyond what could be attributed to falling costs as companies take advantage of economies of scale and cheaper technologies). Which of the following is the best explanation for this observation?

A) More firms are likely to enter the consumer electronic market over time, forcing market prices down.

B) Early adopters of these new products typically have a higher demand and higher income compared to those who are willing to wait.

C) Early adopters are more quality conscious and are willing to pay higher prices for the initial production of these goods.

D) After satisfying the demand for early adopters, firms lower price to attract the more price sensitive consumers.

39) The antitrust law that prohibits price discrimination on grounds that it reduces competition is

A) the Clayton Act.

B) the Federal Trade Commission Act.

C) the Robinson-Patman Act.

D) the Sherman Act.

40) With a monopolist engages in perfect price discrimination, the quantity produced and sold

A) is lower than the quantity produced and sold if it adopted a single price.

B) is larger than the quantity produced and sold if it adopted a single price.

C) is the same level as that produced and sold if it adopted a single price.

D) could be lower, higher or the same as that produced and sold if it adopted a single price.