Author Question: For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and ... (Read 63 times)

Coya19@aol.com · **on:** Jul 1, 2018

For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints. Therefore,
a. If SRMR>SRMC at capacity, then the firms should price to fill capacity
b. If SRMR c. If LRMR>LRMC at capacity, then the firms should price to fill capacity
d. If LRMR>LRMC at capacity, then the firms should price to fill capacity

Question 2

An employer faces a minimum wage control where it cannot pay its workers any less than 10.25 an hour. The employer knows that the workers value the jobs and are willing to work even at much less. The employer decides to offer them the minimum wage, but successfully stops other sellers of work uniform from sell uniforms to its workers so that he can charge more for the ones he sells. This is an example of
a. Tying
b. Bundling
c. Exclusion
d. Fraud