In Figure 13-2 above, suppose that the Fed maintains a constant interest rate, commodity prices are fixed, and that commodity demand is unstable ranging from IS0 to IS1. Equilibrium real output would then range from
A) A0 to A1.
B) B0 to B1.
C) C0 to C1.
D) Insufficient information.
B
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If the production of a good creates pollution, then the
A) marginal social benefit curve lies above the marginal private benefit curve. B) marginal social cost curve lies above the marginal private cost curve. C) marginal social benefit curve lies below the marginal private benefit curve. D) marginal social cost curve lies below the marginal private cost curve.
Which of the following is likely protected by copyright?
A) Your recipe for chocolate cake B) Your autobiography C) The color scheme for your house D) The names of your children
Shooting Star Books is a small publishing company that specializes in science fiction books. Like most publishers, Shooting Star releases new books in hardcover form and later releases paperback versions of the books
The marginal cost of printing both types of books is $2 per book, and Shooting Star maximizes profits by practicing intertemporal price discrimination. The annual demand for recently released (hardcover) books is Q1 = 400 - 10P1 where quantity demanded is measured in thousands of books and price is measured in dollars per book. The annual demand for the paperback version of previously released books is Q2 = 800 - 40P2. a. What are the marginal revenue curves associated with the two demand curves for books? b. What are the profit maximizing prices for hardcover and paperback books? What are the quantities of books demanded at these prices for hardcover and paperback books? c. Suppose the market demand for paperback books shifts to Q2 = 150 - 100P2. How does this change affect the profit maximizing price and quantity in the paperback book market? Does this change affect the profit maximizing outcome in the hardcover book market?
Price discounts to selected buyers with the intent of driving out smaller competitors is
a. widespread in all industries b. common in the retailing industry only c. illegal under the Robinson-Patman Act d. allowed if the four-firm concentration ratio is less than 50 percent e. beneficial to consumers in the long run