An increase in the price of tickets to a popular sporting event will increase total revenue if:
A. There are many substitutes for this form of entertainment
B. The ticket is considered to be a luxury
C. The buyers of the tickets are fanatic about the event
D. The fans are price-conscious
C. The buyers of the tickets are fanatic about the event
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A metal-stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to nap. It would cost the factory $5 million to move; it would cost $1 million for the day care center to move. Sound insulation for the factory costs $1 million; insulation for the day care center costs $200,000 . The court determines that the day care center has the property right
What would be the optimal solution to this problem? a. The factory should install sound insulation because that is cheaper than moving. b. The factory should pay the day care center to move. c. The factory should buy insulation for the day care center. d. The day care center should buy its own insulation. e. The day care center should move.
A recessionary gap is the amount that autonomous aggregate expenditures must rise to cause the equilibrium level of real GDP to shift to the full-employment level of real GDP
a. True b. False Indicate whether the statement is true or false
Parity pricing and target pricing differ in that
a. consumers pay a higher than equilibrium price under parity pricing and a lower than equilibrium price under target pricing b. consumers pay a higher than equilibrium price under target pricing and a lower than equilibrium price under parity pricing c. parity pricing generates an excess supply of farm goods while target pricing generates an excess demand d. parity pricing generates an excess demand for farm goods while target pricing generates an excess supply e. under parity pricing, consumer demand determines price while under target pricing, market supply determines the price
For most firms, the biggest cost of doing business is wages.
Answer the following statement true (T) or false (F)