For a two-part tariff imposed on two consumers, the entry fee is based on the:
A) consumer surplus of the customer with lower willingness-to-pay.
B) consumer surplus of the customer with higher willingness-to-pay.
C) simple average of the consumer surplus for the two buyers.
D) none of the above
A
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Which of the following would shift the aggregate demand curve to the left?
a. increases in government purchases, investment spending, autonomous consumption, taxes or the money supply b. decreases in government purchases, investment spending, autonomous consumption, or the money supply c. increases in government purchases, investment spending, autonomous consumption or the money supply d. decreases in government purchases, investment spending, autonomous consumption, taxes or an increase in the money supply e. only increases in government purchases
Which of the following is correct?
a. NCO = NX b. NCO + I = NX c. NX + NCO = Y d. Y = NCO - I
In Figure 12.6, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit maximizing price of $300 per ticket. Suppose that Fly Smart discovers that a second airline is contemplating entering the market. If the minimum market entry quantity is 130 passengers per day, what is Fly Smart's profit when it commits to the entry-deterring quantity?
A. $60,000 B. $44,400 C. $33,600 D. $29,600
The aggregate demand curve shows the combinations of output and the price level that put the economy on
A. the IS curve. B. the FE line, the IS curve, and the LM curve. C. the FE line and the IS curve. D. the IS curve and the LM curve.