The figure below shows the demand for items from a warehouse club. All of the people who shop at the warehouse club have the same demand. If the managers set a single price, so that all customers pay the same price for every item they buy, the firm makes an economic profit of ________ and if the managers use two-part pricing, the firm makes an economic profit of ________.
A) $40 million; $80 million
B) $60 million; $80 million
C) $40 million; $60 million
D) $0; $80 million
A) $40 million; $80 million
You might also like to view...
Beer and wine were difficult to find during the prohibition on alcohol, but whisky and gin were plentiful. Why?
A) Beer and wine were illegal; whisky and gin weren't. B) The drinking public only wanted whisky and gin. C) Criminals found it much more efficient to produce liquor. D) Police were willing to overlook production and consumption of whisky and gin because they believed liquor was less dangerous than beer and wine. E) Government officials were interested in seeing what would happen to rate of alcohol poisoning in the United States.
If the balance of the current account in the United States is -$900 billion, which of the following is most likely to be true?
A) The balance on the financial account is positive. B) Net foreign investment is positive. C) The trade balance is positive. D) The balance on the capital account is negative.
Refined raw materials that have not yet reached the finished product stage are called
a. raw goods b. unfinished goods c. finished goods d. works-in-process e. prefinished products
It is generally true that elected officials find it easier to:
A. raise taxes and cut government spending. B. cut government spending. C. cut taxes. D. raise both taxes and government spending.