A competitive equilibrium is not Pareto efficient if some members of society are unable to afford a necessary good
Indicate whether the statement is true or false
False. The competitive equilibrium described is efficient since all consumers set MRS equal to the price ratio. The problem with the described equilibrium is one of distributive justice not efficiency.
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Theatres charge lower prices for a matinee and usually don't accept coupons for the night showing of movies because
A) consumers that attend the matinee have a higher price elasticity of demand. B) consumers that attend the night show have a lower price elasticity of demand. C) it increases profits compared to charging a single price. D) All of the above.
Big Pools is large swimming complex. Suppose adults have a demand for entrance into Big Pools that is less than half of the teenagers demand for entrance and there are an equal number of adults and teenagers. If Big Pools practices two-part pricing, to earn greater profit, Big Pools ________ adjust the membership fee to include ________.
A) should not; adults B) should; adults C) should not; teenagers D) should; all consumers
At a price of $15, a firm sells 80 Blu-ray discs per day. If the slope of the demand curve is 0.10, marginal revenue is $5.
Answer the following statement true (T) or false (F)
The most important function of money is when money is used as a
A. medium of exchange. B. standard of deferred payment. C. store of value. D. unit of accounting.