A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should
a. Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows
b. Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows
c. Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
d. Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
c
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In Figure 4-18, there would be a surplus of T-shirts if the price were
A. $10. B. $8. C. below $8. D. between $8 and $6.
One point on a PPF shows production levels at 50 tons of coffee and 100 tons of bananas. Remaining on the PPF, an increase of banana production to 140 tons shows coffee production at 30 tons
Still remaining on the PPF, coffee production at 10 tons allows banana production at 160 tons. The opportunity cost of a ton of bananas is A) constant because coffee production decreased by the same amount each time. B) decreasing, since the increase in banana production is less at each point considered. C) 16 to 1, that is every 1 ton of coffee given up will result in 16 more tons of bananas. D) increasing from 1/2 ton of coffee per ton of bananas to 1 ton of coffee per ton of bananas.
Which of the following is true at the profit-maximizing quantity for both a perfectly competitive firm and a monopoly?
a. Price equals marginal cost. b. Price is greater than marginal cost. c. Marginal revenue equals marginal cost. d. Marginal revenue is less than marginal cost. e. Marginal revenue is greater than average revenue.
The measure of the relationship between a change in income and the consequent relative change in quantity demanded at a given price is the: a. cross elasticity of supply
b. elasticity of supply. c. cross elasticity of demand. d. income elasticity of demand.