If Ed Sike (who you met in Chapter 8 ) lowers ticket prices to a point where the number of tickets demanded is greater than the number of seats available,
A) Ed will be in a good position to grant favors to his friends.
B) net revenue will be negative.
C) net revenue will be positive but not necessarily at the maximum level.
D) resources will not be allocated efficiently.
E) total revenue will be maximized.
A
You might also like to view...
Use the figure above to answer this question. Consider a perfectly competitive firm in a short-run equilibrium. Figure ________ shows a firm in bad times because the firm makes a(n) ________
A) A; economic loss of $4 per unit if the firm decides to operate B) A; economic loss of $4 so it must close C) B; economic loss of $3 per unit D) B; economic profit because the price exceeds average variable cost E) C; normal profit and can stay open in the long run
Assume the price elasticity of supply for grade wheat has been estimated to be +0.82. This means that when the price of wheat increases by 10 percent, the quantity of wheat supplied to the market increases by 82 percent
Indicate whether the statement is true or false