Airlines generally charge travelers willing to stay over Saturday night lower fares because
a. these travelers have lower incomes, and therefore, the airlines would like to help them.
b. it cost less to transport travelers willing to stay over a Saturday night.
c. the demand of these travelers is elastic, and therefore, the lower fares generate more revenue.
d. the demand of these travelers is inelastic, and therefore, the lower fares generate more revenue for the airlines.
C
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If, in a competitive market, marginal benefit is less than marginal cost
A) the government must force producers to raise prices in order to achieve economic efficiency. B) the output is greater than the equilibrium quantity. C) the output is less than the equilibrium quantity. D) the net benefit to consumers from participating in the market is less than the net benefit to producers.
Other things the same, an unexpected fall in the price level results in some firms having
a. lower than desired prices, which increases their sales. b. lower than desired prices, which depresses their sales. c. higher than desired prices, which increases their sales. d. higher than desired prices, which depresses their sales.
In many large U.S. cities, taxicabs operate as near monopolies because of:
A. patents. B. economies of scale. C. control of essential resources. D. licenses.
Left to themselves, most markets will eventually reach market equilibrium.
Answer the following statement true (T) or false (F)