Use the above figure. The profit-maximizing monopolistically competitive firm
A. is earning $0.05 per unit of output.
B. is losing $0.05 per unit of output.
C. is earning $0.15 per unit of output.
D. is earning $0.40 per unit of output.
Answer: A
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A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should
a. Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows b. Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows c. Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows d. Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
If the Fed uses its tools to expand the money supply, bond prices will be bid down and interest rates will rise
a. True b. False Indicate whether the statement is true or false