A movie monopolist sells to students and adults. The demand function for students is QdS = 600 - 100P and the demand function for adults is QdA = 1,200 - 100P. The marginal cost is $2 per ticket. Suppose the movie theater can price discriminate. What price per ticket does the theater charge students to maximize profits?
A. $4
B. $7
C. $6
D. $12
A. $4
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Under a fixed exchange rate system, the central bank of a country experiencing a balance of payments surplus will:
A) increase the supply of domestic currency to prevent currency depreciation. B) increase the demand for domestic currency to prevent currency depreciation. C) increase the supply of domestic currency to prevent a currency appreciation. D) increase the demand for domestic currency to prevent a currency appreciation.
If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?
a. frictional unemployment b. structural unemployment c. cyclical unemployment d. all of the above
Refer to the diagrams, in which AD 1 and AS 1 are the"before" curves and AD 2 and AS 2 are the "after" curves. Other things equal, a decline in net exports caused by a change in incomes abroad is depicted by:
A. panel (A) only.
B. panel (B) only.
C. panel (C) only.
D. panels (B) and (C).
Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. If opportunity costs are constant, the two countries will gain from trade at a rate of exchange of
A. 0.1 computer for 1 bicycle. B. 8 bicycles for 1 computer. C. 5 computers for 1 bicycle. D. 1 computer for 1 bicycle.