Question 20.span>20. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game Price per Ticket Quantity Demanded $13 1,000 11 2,000 9 3,000 7 4,000 5 5,000 3 6,000 varies inversely with ticket prices. varies directly with ticket prices. is perfectly inelastic. is perfectly elastic. Question 21.21. Which of the following goods (with their respective income-elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession? Dinner at a nice restaurant (+1.8) Chicken purchased at the grocery store for preparation at home (+0.25) Facial tissue (+0.6) Plasma-screen and LCD TVs (+4.2) Question 22.22. The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600 4 650 5 700 What is the firm’s average variable cost at an output of 5 units? $30 $60 $120 $140 Question 24.24. v Any activity designed to transfer income or wealth to a particular individual or firm at society’s expense is called patent protection. X-inefficiency. price discrimination. rent-seeking. Question 25.25. a.) What is the relationship between economies of scale and a natural monopoly? b.) Why is the level of output at which marginal revenue equals marginal cost the profit-maximizing output? Question 26.26. Evaluate how the following situations will affect the demand curve for iPods. (a) Income statistics show that income of 18–25-year-olds have increased by 10 percent over the last year. (b) Efforts of music artists wanting greater protection of their music result in more stringent enforcement of copyrights and the shutdown of numerous illegal downloading sites. (c) Believing that it has significant control of the market for portable digital music players, Apple decides to raise the price of iPods with the goal of increasing profits.
Question 20.span>20. Refer to the information and assume the stadium capacity is 5,000. The supply of seats for the game
Price per Ticket
Quantity Demanded
$13
1,000
11
2,000
9
3,000
7
4,000
5
5,000
3
6,000
varies inversely with ticket prices.
varies directly with ticket prices.
is perfectly inelastic.
is perfectly elastic.
Question 21.21. Which of the following goods (with their respective income-elasticity coefficients in parentheses) will most likely suffer a decline in demand during a recession?
Dinner at a nice restaurant (+1.8)
Chicken purchased at the grocery store for preparation at home (+0.25)
Facial tissue (+0.6)
Plasma-screen and LCD TVs (+4.2)
Question 22.22. The following cost data are for a firm in the short run: Output Total Cost 0 $400 1 500 2 550 3 600 4 650 5 700
What is the firm’s
$30
$60
$120
$140
Question 24.24. v Any activity designed to transfer income or wealth to a particular individual or firm at society’s expense is called
patent protection.
X-inefficiency.
rent-seeking.
Question 25.25. a.) What is the relationship between economies of scale and a natural
Question 26.26. Evaluate how the following situations will affect the demand curve for iPods.
(a) Income statistics show that income of 18–25-year-olds have increased by 10 percent over the last year.
(b) Efforts of music artists wanting greater protection of their music result in more stringent enforcement of copyrights and the shutdown of numerous illegal downloading sites.
(c) Believing that it has significant control of the market for portable digital music players, Apple decides to raise the price of iPods with the goal of increasing profits.
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