MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Question
Chapter 16, Problem 1IP
(a)
To determine
Airline and hotels provide frequent flyer programs instead of lower prices.
(b)
To determine
Example for the programs that provide incentives to consumers.
(c)
To determine
Reason for not monitoring these programs.
(d)
To determine
Taxing these programs.
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Students have asked these similar questions
If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect a.competition to force producers to pass the lower production costs on to consumers in the long run. b.the firms in the industry to make long-run economic profit. c.the market price of the products of this industry to decrease in the short run but not in the long run. d.the demand for the products of this industry to increase.
Which of the following describes the type of entry barrier faced for hotels?
A. There is a natural entry barrier for taxicabs because entry into the market has been limited through quotas.
B. There is a natural entry barrier for hotels because entry into the market has been limited by the economies of scale.
C. There is a created entry barrier for hotels because entry into the market has been limited by the economies of scale.
D. There is a created entry barrier for hotels because entry into the market has been limited through limited access to key natural resources.
Why does equilibrium in a market tend to be stable?
a. It doesn’t. Observed stability is largely the result of custom, but markets are inherently chaotic.
b. Almost all markets are de facto monopolies. Monopolists rarely change prices so as not to alert consumers to the possibility of buying goods more cheaply.
c. Government regulations ensure that prices can only change slowly, so that an equilibrium price appears stable in the short run.
d. When the price deviates from the equilibrium price, surpluses or shortages occur. As market participants act to be better off, they drive the market back to equilibrium.
Chapter 16 Solutions
MICROECONOMICS
Ch. 16.1 - Prob. 1QCh. 16.1 - Prob. 2QCh. 16.1 - Prob. 3QCh. 16.1 - Prob. 4QCh. 16.1 - Prob. 5QCh. 16.1 - Prob. 6QCh. 16.1 - Prob. 7QCh. 16.1 - Prob. 8QCh. 16.1 - Prob. 9QCh. 16.1 - Prob. 10Q
Ch. 16 - Prob. 1QECh. 16 - Prob. 2QECh. 16 - Prob. 3QECh. 16 - Prob. 4QECh. 16 - Prob. 5QECh. 16 - Prob. 6QECh. 16 - Prob. 7QECh. 16 - Prob. 8QECh. 16 - Prob. 9QECh. 16 - Prob. 10QECh. 16 - Prob. 11QECh. 16 - Prob. 12QECh. 16 - Prob. 1QAPCh. 16 - Prob. 2QAPCh. 16 - Prob. 3QAPCh. 16 - Prob. 4QAPCh. 16 - Prob. 5QAPCh. 16 - Prob. 6QAPCh. 16 - Prob. 1IPCh. 16 - Prob. 2IPCh. 16 - Prob. 3IPCh. 16 - Prob. 4IPCh. 16 - Prob. 5IPCh. 16 - Prob. 6IPCh. 16 - Prob. 7IPCh. 16 - Prob. 8IPCh. 16 - Prob. 9IPCh. 16 - Prob. 10IPCh. 16 - Prob. 11IP
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