8. A If Coke is able to use price discrimination successfully, some customers ma

Question

8. A If Coke is able to use price discrimination successfully, some customers may be willing to pay more for a Coke than another very similar soda. False True 8. B
Some economists think that advertising is a waste of resources because: consumers might be irrational and buy things they do not need. advertising leads to lower costs for goods and services. rational consumers end up spending too little on brand names. advertising creates excess capacity. 8 c. As a New York businessperson who does a lot of flying, Jared is keenly aware of even small changes in airfare from New York to Chicago. He has flown this route long enough to know that each airline is essentially a perfect substitute for the others. He notices that every time the largest airline changes the price, smaller airlines follow, but the smaller airlines are always priced slightly below the fare of the largest airline. This industry could best be described as one with: cartel behavior. price wars. nonprice competition. price leadership. 8. D A trust is: is a government agency that regulates natural monopolies. occurs when shareholders of the major companies in an industry turn over their shares to a board of trustees who then control all of the companies. is the new organization that is created when two firms merge. is another name for a large insurance company.
8. A If Coke is able to use price discrimination successfully, some customers may be willing to pay more for a Coke than another very similar soda. False True 8. B
Some economists think that advertising is a waste of resources because: consumers might be irrational and buy things they do not need. advertising leads to lower costs for goods and services. rational consumers end up spending too little on brand names. advertising creates excess capacity. 8 c. As a New York businessperson who does a lot of flying, Jared is keenly aware of even small changes in airfare from New York to Chicago. He has flown this route long enough to know that each airline is essentially a perfect substitute for the others. He notices that every time the largest airline changes the price, smaller airlines follow, but the smaller airlines are always priced slightly below the fare of the largest airline. This industry could best be described as one with: cartel behavior. price wars. nonprice competition. price leadership. 8. D A trust is: is a government agency that regulates natural monopolies. occurs when shareholders of the major companies in an industry turn over their shares to a board of trustees who then control all of the companies. is the new organization that is created when two firms merge. is another name for a large insurance company.
8. A If Coke is able to use price discrimination successfully, some customers may be willing to pay more for a Coke than another very similar soda. False True 8. B
Some economists think that advertising is a waste of resources because: consumers might be irrational and buy things they do not need. advertising leads to lower costs for goods and services. rational consumers end up spending too little on brand names. advertising creates excess capacity. Some economists think that advertising is a waste of resources because: consumers might be irrational and buy things they do not need. advertising leads to lower costs for goods and services. rational consumers end up spending too little on brand names. advertising creates excess capacity. 8 c. As a New York businessperson who does a lot of flying, Jared is keenly aware of even small changes in airfare from New York to Chicago. He has flown this route long enough to know that each airline is essentially a perfect substitute for the others. He notices that every time the largest airline changes the price, smaller airlines follow, but the smaller airlines are always priced slightly below the fare of the largest airline. This industry could best be described as one with: cartel behavior. price wars. nonprice competition. price leadership. 8. D A trust is: is a government agency that regulates natural monopolies. occurs when shareholders of the major companies in an industry turn over their shares to a board of trustees who then control all of the companies. is the new organization that is created when two firms merge. is another name for a large insurance company. is a government agency that regulates natural monopolies. occurs when shareholders of the major companies in an industry turn over their shares to a board of trustees who then control all of the companies. is the new organization that is created when two firms merge. is another name for a large insurance company.

Explanation / Answer

8. A. True. Because, Coke being a branded good price discrimination can be successful over other similar unbranded soda

8. B 3. Because rational customer would have complete information about a good who purchases based on his needs

8. C. Price leadership
It is defined as the setting of prices in a market by a dominant firm which would be followed by other smaller rival firms. Here the smaller airlines follow the larger airlines in revising prices.

8. D
It is defined as a commercial organization which is managed by appointed trustees for the benefit of one or more beneficiaries.

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