Refer to Figure 16-2. Suppose Plato Playhouse price discriminates. Which of the following statements is true?
A) By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby increasing economic efficiency.
B) By charging two different prices, the theatre company essentially allows those willing to pay higher prices to subsidize those who are not.
C) Plato Playhouse will earn higher profits if it charges a single price—an average of the two prices— instead of charging two different prices to the two different groups of customers.
D) By charging two different prices, the theatre company has redistributed some profits from those who can pay higher prices to those who cannot, thereby improving equity.
B
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The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because
A) producers cannot measure marginal social cost. B) producers do not pay the external cost. C) the general public does not care about external costs. D) external costs are not a political issue. E) the external cost is paid by consumers rather than producers.
From the mid-1960s to the present, what would a graph of U.S. productivity rates against time reveal?
(a) A stable upward trend in the amount of output per paid hour (b) An unstable but upward trend (c) A U-shape (d) A downward trend
The ratio of the price of the good on the horizontal axis divided by the price of the good on the vertical axis multiplied by -1
a. is the slope of the demand curve b. measures the price elasticity of demand for a particular good c. defines real income for the consumer d. is the slope of the budget line e. is the slope of the indifference curve
Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. In the long run in this monopolistically competitive industry,
A. all firms will leave the industry. B. some firms will leave the industry until the remaining firms break even economically. C. product supply will increase so prices will go up. D. some firms will enter the industry and industry profits will increase.