Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

____ 20. As a legitimate means of discouraging the problem of free riders, what

ID: 2441438 • Letter: #

Question

____   20.   As a legitimate means of discouraging the problem of free riders, what do economists suggest using?

a.

tying

b.

resale price maintenance

c.

marginal cost pricing

d.

cost plus pricing

____   21.   Which of the following is a characteristic of the demand for a factor of production?

a.

It is based on the supply curve of the product market.

b.

It is a derived demand.

c.

It is a differentiated demand.

d.

It is likely to be upward sloping, in violation of the law of demand.

Figure 18-2

____   28.   Refer to Figure 18-2. What happens to the profit earned by apple producers and to the wage earned by apple pickers when the price of apples rises?

a.

Profit will rise. and the wage will fall.

b.

Profit will fall, and the wage will rise.

c.

Both profit and the wage will rise.

d.

Both profit and the wage will fall.

a.

tying

b.

resale price maintenance

c.

marginal cost pricing

d.

cost plus pricing

Supply Demand Quanltity of (t of applie p

Explanation / Answer

20. The correct answer is D.

21. The correct answer is B.

28. The correct answer is C.