Suppose that Lady Gaga sells 1,000 tickets to a concerts at $480 each
If the equilibrium price is $600 per ticket for a fixed supply of 1,000 tickets, what is the value of the additional economic rent that Lady Gaga could earn if she charged the market clearing price? A) $1,080,000
B) $120,000
C) $600,000
D) $480,000
B
You might also like to view...
Franco's Frozen Ice produces Italian flavored ice that is sold in the freezer section of grocery stores. Currently, Franco's does not have a fixed advertising budget and advertises in grocery stores' weekly advertising flyers and on the radio. A unit of advertising in the weekly flyers costs $1,500 and a unit of advertising on the radio costs $4,500. At their current advertising levels, the
marginal benefit of advertising in the flyer is $1,750 and the marginal benefit of advertising on the radio is $5,000. Which of the following is true? A) To maximize profits, Franco's should increase the amount of advertising in flyers and on the radio. B) To maximize profits, Franco's should increase the amount of advertising in flyers, but not change the amount of advertising on the radio. C) Franco's is currently maximizing its profits from advertising. D) To maximize profits, Franco's should decrease the amount of advertising in flyers and on the radio.
Under the dual labor market theory, expansion of economic activity in the primary market will benefit workers in the secondary market
Indicate whether the statement is true or false
Which of the following is an entitlement program?
A) Social Security B) Medicare C) Medicaid D) all of the above E) none of the above
Entry into a monopolistically competitive industry
A. is very difficult. B. is about the same as entering a monopoly industry. C. is relatively easy. D. can be easy or difficult, depending on the type of product.