You rent a DVD of The Dark Knight Rises. The rental is for seven days and you watch the movie on the first day. You tell a friend about the film and your friend asks to come over and watch the movie with you before it is due back. What is your opportunity cost if you decide to watch the movie a second time instead of going to a football game?
A. the entire cost of the movie rental, since you have already watched the movie
B. one half the rental cost, because you have already watched the movie one time
C. zero, because you already paid for the rental.
D. the football game you forego by watching the movie again
Answer: D
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A. Price discrimination is illegal and can lead to lawsuits and lost customers. B. The information needed does not exist and scarce resources should not be used searching for it. C. Price discrimination in any form is not viable for most companies as a way to increase profits. D. The information needed can be costly and can lead to decreased profits for the company.
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a. True b. False Indicate whether the statement is true or false
For a monopoly, when marginal revenue is zero:
A. marginal revenue is minimized. B. total revenue is maximized. C. profits are maximized. D. marginal costs are minimized.