Figure 11-5
Crown Theater is the only movie theater in the city. Its cost and revenue curves are shown in Figure 11-5. Monopolist Crown Theater would set the price of its tickets at
A. $7.50.
B. $6.00.
C. $4.50.
D. $3.00.
Answer: A
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Indicate whether the statement is true or false
If two goods are complementary,
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a. more frequent price changes and increased variability of relative prices. b. more frequent price changes and decreased variability of relative prices. c. less frequent price changes and increased variability of relative prices. d. less frequent price changes and decreased variability of relative prices.
What is a major disadvantage in the use of import barriers to make domestic goods cheaper?
(A) The line between imported and domestic goods becomes harder and harder to draw. (B) Domestic manufacturers may lose the economic incentive to produce their cars less expensively. (C) Import manufacturers stop trying to send their goods to the country that has import barriers. (D) Domestic manufacturers create more jobs