A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What is the monopolist's profit from students?
A. $400
B. $2400
C. $2500
D. $0
A. $400
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Which of the following best represents government saving?
A) T - (G + TR) B) (Y - TR) + I C) (Y - C - G - NX) D) (Y + TR - T) + C
If Slick Shades, a sunglasses manufacturer, contracts with an outside supplier to manufacture the lenses for the sunglasses, this is an example of ________.
A) outsourcing B) divestiture C) backward integration D) forward integration
Mistakenly adding the value of a good or service twice by counting the intermediate goods and services in GDP is known as: a. value added
b. double counting. c. factor payments. d. net depreciation.
As inflation drives up prices, people attempt to find substitutes and adjust what they buy. The resulting substitution bias problem causes the CPI to:
A. overstate the impact of higher prices on consumers. B. consistently underestimate the true inflation rate. C. omit the benefits of product quality improvements. D. have larger fluctuations than other price indexes.