EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 7RE
To determine
(a)
Whether the statement regarding the effect of Internet auction companies on the profits of local automobile dealerships, is a positive statement or a normative statement.
To determine
(b)
The statement whether government should impose special taxes on sales of merchandise made over the Internet, is a positive statement or a normative statement.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Consider the theater in which a Broadway play is performed. If tickets for all seats are the same price(say $10), what economic effect might arise?
Discuss value-based pricing in a market economy
Discuss what is Market Pricing and identify all salient factors of market pricing on economic decision-making.
Chapter 1 Solutions
EBK MICROECONOMICS
Ch. 1 - Prob. 1RECh. 1 - Prob. 2RECh. 1 - Prob. 3RECh. 1 - Prob. 4RECh. 1 - Prob. 5RECh. 1 - Prob. 6RECh. 1 - Prob. 7RECh. 1 - Prob. 1.1PCh. 1 - Prob. 1.2PCh. 1 - Prob. 1.3P
Ch. 1 - Prob. 1.4PCh. 1 - Prob. 1.5PCh. 1 - Prob. 1.6PCh. 1 - Prob. 1.7PCh. 1 - Prob. 1.8PCh. 1 - Prob. 1.9PCh. 1 - Prob. 1.10PCh. 1 - Prob. 1.11PCh. 1 - Prob. 1.12PCh. 1 - Prob. 1.13PCh. 1 - Prob. 1.14PCh. 1 - Prob. 1.15PCh. 1 - Prob. 1.16PCh. 1 - Prob. 1.17PCh. 1 - Prob. 1.18PCh. 1 - Prob. 1.19PCh. 1 - Prob. 1.20PCh. 1 - Prob. 1.21P
Knowledge Booster
Similar questions
- What is the term for the economic principle that individuals try to get the greatest benefit from a given resource? A) Opportunity Cost B) Marginal Utility C) Supply and Demand D) Rational Choice Theoryarrow_forwardwhy is competition good for the consumer from an economics perspectivearrow_forwardDiscuss cost-plus pricing model in a market economyarrow_forward
- Michael owns a strawberry farm in central California and is deciding how many strawberries to supply this month. Which question appropriately applies the cost-benefit principle to the supply decision? Is the price Michael gets for the extra bushel of strawberries at least as large as the marginal cost? What is the fixed cost of production for Michael's strawberries? If Michael was not producing strawberries, how else could he use his resources? Is Michael "holding all else constant" when making this decision?arrow_forwardWhy social optimal output more beneficial to society?arrow_forwardIt’s increasingly clear that many postings on blogs and product reviews on Web sites are fake or are posted there to manipulate consumers’ opinions. How big a problem is this if consumers increasingly look to consumer-generated product reviews to guide their purchase decisions? What steps, if any, can marketers take to nip this problem in the bud?arrow_forward
- Answer the questions below based on the following scenario: Pricing Scenario: You just won a new laptop in a contest, and you decide to sell your old one. You do not have a lot of money and want to get the highest price possible for your old laptop. It is a Mac that you bought brand new last year. You are listing the laptop online, and you need to identify the price. a. What price would you list your laptop for? b. Explain why the price you proposed would maximize your revenue using the principles of supply and demand. c. Do you believe the demand for your laptop will be elastic or inelastic? Explainarrow_forwardClick on the icon to read the news clip, then answer the following questions. The graph shows the market for Microsoft Windows. >>> The graph will plot data needed to answer this question. If the marginal cost of making a copy of the full version of Windows that includes Interned Explorer (IE) is zero, Microsoft will set the price of Windows at $ per copy. If the average fixed cost of stripping IE from Windows is $80 per copy, Microsoft will set the price of Windows stripped of IE at $ per copy. If the marginal cost of stripping IE from Windows is $80 per copy, Microsoft will set the price of Windows stripped of IE at $ per copy. It in Microsoft's self-interest to set a different price for a version stripped of IE if the marginal cost of producing the stripped version differs from the version that includes IE. 800- 720- 640- 560- 480- 400- 320- 240- 160- 80- Price (dollars per copy) D MR 0- 0 10 20 30 40 50 70 80 Quantity (thousands of copies of Windows per month) >>> Click on the…arrow_forwardQUESTION 38 38. Which of the following statements referring to economic jargon is TRUE? a "free good" is one which is so abundant that there is enough to satisfy all that people may want of it. "scarcity" arises from assumptions of unlimited human wants and limited resources. a "scarce good" is one for which quantity demanded is less than quantity supplied. all the above are true only (a) and (b) above are true.arrow_forward
- There are only a few restaurants near a tourist attraction. These restaurants would mail discount coupons to local residents nearby and they find that this could help them earning more profits. Explain the economic principle behind this.arrow_forwardWhen goods are called homogenous. What does this actually means?arrow_forwardThe scenarios each illustrate the principle of economics. Match each scenarios with the principle that best fits it You are currently in a labeling module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store and buying a flat-screen TV at another store and buying one means he will lose the ability to purchase the other.An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. It compares how much adding another worker will improve the product with the additional cost.To entice students to keep themselves up to date with economic current events, an instructor offers extra credit to students for participating in an online discussion forum, and this sparks a lively debate about environmental policy.…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMicroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning