A residual demand curve:
A. shows the relationship between the market price and the quantity demanded by consumers at each price.
B. shows the relationship between a firm's output and the market price given the prices charged by the firm's rivals.
C. shows the relationship between a firm's output and the market price given the outputs of the firm's rivals.
D. shows the remaining demand for a good after a firm's rivals have sold their output.
C. shows the relationship between a firm's output and the market price given the outputs of the firm's rivals.
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If the monopoly illustrated in the figure above could engage in perfect price discrimination, then when it maximizes its profit the total revenue collected by the firm would be
A) $110. B) $120. C) $210. D) $310.
Suppose that a television studio has two shows, X and Z, and that tickets for viewing the taping of each show is free. The equilibrium price for a ticket to view the taping of show X is $25 and the equilibrium price for a ticket to view the taping of show B is -$20. It is likely that tickets to show ________ will need to be rationed on a first-come-first-served basis, while the producers of show
________ will have a much more difficult time filling the seats in the studio since the equilibrium price for tickets to that show is a __________ dollar amount. A) Z; X; positive B) Z; X; negative C) X; Z; positive D) X; Z; negative