Figure 11-5
In Figure 11-5, Crown Theater, a monopolist movie theater, will make a profit of ____ at its profit-maximizing price and quantity of theater tickets.
A. $450
B. $150
C. $300
D. $750
Answer: C
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Refer to Figure 7.1. Dudley values silence at
A) $100. B) $200. C) $350. D) $550.
Suppose a consumer's demand function is 
.
a. What's the general equation for the own-price elasticity of demand for this consumer?
b. What's the price elasticity of demand when p=25?
c. Suppose instead that the demand function is 
. How does the equation for own-price elasticity change?
d. Continue with the demand equation in (c). Suppose p=25. What's the cross-price elasticity for x?e. Continuing with part (d), what's the cross-price elasticity when the price of y is equal to 50?
What will be an ideal response?
It is generally more profitable for a firm to pay workers more than the going wage rate:
A. in areas in which turnover is not very costly. B. in sectors where skills are scarce. C. in industries in which worker motivation doesn't really matter. D. All of these are true.
A price floor means that:
A. inflation is severe in this particular market. B. sellers are artificially restricting supply to raise price. C. government is imposing a maximum legal price that is typically below the equilibrium price. D. government is imposing a minimum legal price that is typically above the equilibrium price.