This topic contains a solution. Click here to go to the answer

Author Question: Vacation tours to Europe invariably package visits to disparate regions: cities, mountains, and the ... (Read 111 times)

cabate

  • Hero Member
  • *****
  • Posts: 537
Vacation tours to Europe invariably package visits to disparate regions: cities, mountains, and the seaside. Bundling, a type of second degree price discrimination, is most profitable when:
 a. the preference rankings of vacationers travelling together are negatively correlated.
  b. a preference for cities is always higher than preferences for mountain vistas.
  c. preference rankings of vacationers travelling together are positively correlated.
  d. preference for the seaside is always higher than preferences for city excursions.
  e. no one wants to take a European vacation package to cities, mountains, and the seaside.

Question 2

Adverse selection in insurance requires that
 a. potential customers face different levels risk
  b. potential customers facing more risk are no more interested in purchasing insurance
  c. people are not risk averse
  d. insurers can tell higher risk people from lower risk people



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

alexanderhamilton

  • Sr. Member
  • ****
  • Posts: 334
Answer to Question 1

a

Answer to Question 2

a





 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

For a complete list of videos, visit our video library