The USProduces and Sells Millions of Types of Products

question 44

Multiple Choice

The U.S.produces and sells millions of types of products.To add them up to a single aggregate, each good is weighted by its:

• A)cost of production.
• B)market price.
• C)utility to consumers.
• D)contribution to corporate profits.

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Definitions:

Tying

A sales strategy where a seller requires buyers to purchase a secondary product or service together with the primary product.

Output Effect

The change in total revenue resulting from a change in quantity sold, holding price constant.

Price Effect

The price effect describes how changes in price influence the quantity demanded or supplied in the market.

Oligopolist

A market participant in an oligopoly, a market dominated by a small number of firms.