A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if
a. adults buy more popcorn than children.
b. the cost of showing a movie to children is less than the cost of showing a movie to adults.
c. it has some degree of monopoly-pricing power.
d. All of the above are correct.
c
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According to the textbook application, recent EPA rules and regulations proposed under the Obama administration
a. fall into the category of market-based policies b. have been met with wide approval among all constituencies c. achieve allocatively efficient levels of pollution abatement d. have been shown to meet the cost-effective criterion e. none of the above
The above table shows production combinations on a country's production possibilities frontier. Which of the following is an example of a production point that is inefficient?
A) 0 units of good X and 40 units of good Y B) 6 units of good X and 28 units of good Y C) 10 units of good X and 16 units of good Y D) 3 units of good X and 35 units of good Y
The reduction in consumer and producer surplus that results from underproduction is called
A) an internal cost. B) a deadweight loss. C) a quantity loss. D) None of the above answers is correct.
The value of marginal product equals
A) total revenue divided by total product (output). B) marginal revenue divided by marginal product. C) total revenue multiplied by total product (output). D) good's market price multiplied by marginal product.