ECN 601 Topic 8 Exam 2 - Test Prep

1. Acquiring a firm that sells a substitute good would make the demand curve for your original product ~ 2. The general rule to increase profits when two close substitute brands are jointly owned is ~ 3. After acquiring closely substitutable product brands, a firm can successfully raise prices on both of the brands without losing much of its total sales because ~ 4. Which of the following is an example of price discrimination? 5. The practice of buying a firm’s good in one market at a low price and selling it in another market for a higher price in order to profit from the price difference is known as ~ 6. The consequences of price discrimination are ~ 7. Movie theatres offer seniors discounts because ~ 8. When a firm practices perfect price discrimination, 9. Public transit offers discounted monthly passes to students, which can only be bought and used with valid student IDs. The transit system is using ~ 10. In which of the following cases does the Robinson-Patman act not apply? 11. The “damaged goods” strategy refers to 12. When the market is in equilibrium, 13. When difference between the minimum price the producer is willing to accept and the price the producer actually receives for a product is referred to as: 14. If you are are willing to sell your lawn mower business for $355,000 and someone offers you $420,000 for it,this transaction will generate: 15. Taxes cause: 16. A price ceiling is binding when. 17. Economic reasoning is based on the premise that: 18. Social forces: 19. One lesson of business: 20. The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as: 21. If you are willing to sell your car business for $500,000 and someone offers you $420,000 for it, this transaction will generate: 22. If you are willing to purchase a house for $500,000 and you purchase the house for $500,000, this transaction will generate: