Movie theaters are able to offer discounts to senior citizens because:
a. the elderly deserve lower prices because of their contributions to society.
b. senior citizens have the most inelastic demand.
c. theaters can separate senior citizens from other customers, and it is easier to prevent resale.
d. senior citizens cannot see the movie very well because of poor eyesight.
e. senior citizens are frequent visitors to the movie theaters.
c
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A competitive firm's shutdown price is equal to the minimum value of the firm's
a. marginal cost. b. average cost. c. average variable cost. d. fixed and sunk costs.
Which of the following variables can be used to measure labor productivity?
A) real GDP B) number of labor hours C) number of workers D) all of the above
Answer the following statements true (T) or false (F)
1. In the long run, under conditions of perfect competition, economic profits are eventually eliminated. 2. If the entry of new firms substantially raises demand for resources, two forces tend to eliminate economic profit in the long run: upward pressure on cost and downward pressure on price. 3. The more that firms advertise, the closer they get to perfect competition. 4. The lowest possible ATC curve is attained at the optimal scale of output. 5. If price equals marginal cost at the long-run equilibrium, this means that economic efficiency is being achieved.
A central bank with a hierarchical mandate will seek ________ as a condition of pursuing other goals
A) stable inflation B) high employment C) moderate interest rates D) the approval of the legislature E) none of the above