Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, its economic profit will be:
A. (P 2 - MC) × (Q 1C + Q 2 ).
B. (P 1 - MC) × (Q 1C + Q 2 ).
C. (P 2 - P 1 ) × (Q 1C + Q 2 ).
D. [(P 1 - MC) × Q 1C ] + [(P 2 - MC) × Q 2 ].
D. [(P 1 - MC) × Q 1C ] + [(P 2 - MC) × Q 2 ].
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Refer to Table 4.1, which shows Flo's and Rita's individual supply schedules for frozen latte-on-a-stick. Assuming Flo and Rita are the only suppliers in the market, what is the market quantity supplied at a price of $5?
A) 3 B) 12 C) 15 D) 27
Budgets deficits can be a concern because they might
A) ultimately lead to higher inflation. B) lead to lower interest rates. C) lead to a slower rate of money growth. D) lead to higher bond prices.
Suppose the U.S. can produce 10 units of food and 5 units of clothing (or any linear combination) and Canada can produce 6 units of food and 3 units of clothing (or any linear combination)
What type of trade will occur between these two countries? Explain.
The less freedom young mothers have to work outside the home, the
a. more elastic the supply of labor will be. b. less elastic the supply of labor will be. c. more horizontal the labor supply curve will be. d. larger is the decrease in employment that will result from a tax on labor.