Which of the following statements is true?
a. Prestigious theaters that can sell tickets for operas for $500 should never sell tickets at $20 prices.
b. You should never tip a host in a restaurant in order to avoid a long wait.
c.Even though the pharmaceutical industry cannot stop other countries from selling lower price drugs to U.S. residents, the industry's efforts to price-discriminate are profitable.
d.Perfect price discrimination can never lead to the most socially desirable level of output since it involves monopoly power.
c.Even though the pharmaceutical industry cannot stop other countries from selling lower price drugs to U.S. residents, the industry's efforts to price-discriminate are profitable.
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A firm's price rises. As a result, the
A) supply of labor to the firm decreases, that is, the labor supply curve shifts leftward. B) supply of labor to the firm increases, that is, the labor supply curve shifts rightward. C) demand for labor by the firm increases, that is, the labor demand curve shifts rightward. D) demand for labor by the firm decreases, that is, the labor demand curve shifts leftward.
If a firm is able to set price,
A) it is a monopoly. B) its marginal revenue is constant. C) it sells its output at a constant price. D) it faces a downward-sloping demand curve.