The figure above shows the demand for fruit snacks. Which movement reflects an increase in income if fruit snacks are an inferior good?
A) from point a to point e
B) from point a to point b
C) from point a to point c
D) from point a to point d
C
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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 cannot price discriminate. What is the monopolist's profit from both students and adults?
A. $2,500 B. $4,950 D. $50
The price elasticity of demand depends on how readily and easily consumers can switch their purchases from one product to another
a. True b. False Indicate whether the statement is true or false
Dan is the owner of a price-taking company that manufactures sporting goods. One particular facility Dan owns produces baseball bats and baseball gloves. His cost function for baseball bats is CB(QB, QG) = 100QB + QB2 + QBQG and the marginal cost is MCB = 100 + 2QB + QG, where QB is the output level for bats and QG is the output level for gloves. Dan's cost function for baseball gloves is CG(QB, QG) = 50QG + QG2 + QGQB, and the marginal cost is MCG = 50 + 2QG + QB. The price of a baseball bat is $240 and the price of a baseball glove is $150. If he only produced gloves, what would Dan's profit be if he produces the profit-maximizing quantity?
A. $2,000 B. $2,200 C. $2,500 D. $3,100
Governments grant patents to
A) compensate firms for research and development costs. B) encourage competition. C) encourage low prices. D) encourage firms to reveal secret production techniques.