If MB grows smaller and MC grows larger as the activity level grows, then:
A. an interior action for which MB = MC is the best choice.
B. net benefit can be increased by increasing the action.
C. net benefit can be increased by decreasing the action.
D. there is no best choice.
A. an interior action for which MB = MC is the best choice.
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In monopolistic competition, a firm can set the price for its product because of
A) easy entry and exit. B) economic profits. C) product differentiation. D) many competitors. E) the firm's upward sloping demand curve.
Which of the following clearly restricts competition?
A) A government policy restricting entry into the market B) A government policy that reduces tariffs on foreign imports C) A business sets price below cost. D) A business sets price above cost. E) Any business pricing scheme that successfully draws customers away from its rivals
For the majority of the U.S. population ________
A) consumption is driven solely by current income B) consumption smoothing is possible C) a change in lifetime resources will not change current consumption D) a change in lifetime resources will not change future consumption
The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.75 for tickets at Movies Plus and adults have an own price elasticity of 1.25. If the managers have correctly determined the third-degree profit-maximizing price for adults is $20, what is the
third-degree profit-maximizing price to charge students? A) $12.50 B) $9.33 C) $15.67 D) $18.25