Figure 3.2 shows the total cost and total benefit curves for a professional guitarist. If the guitarist is currently practicing 1 hour per day, then:
A. she should practice more because net benefits would increase.
B. she should practice less because net benefits would decrease.
C. she should practice less because net benefits would increase.
D. she should practice more because net benefits would decrease.
A. she should practice more because net benefits would increase.
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Explain briefly PPP and IRP. Why might the latter hold better than the former over time?
What will be an ideal response?
Suppose a firm produces identical goods for two separate markets and practices third-degree price discrimination. In the first market the firm charges $30 per unit, and it charges $22 per unit in the second market
Which of the following represents the ratio of price elasticities of demand in the two markets? A) E2 = (21/29)E1 B) E2 = (29/21)E1 C) E2 = E1 D) E2 = (22/30)E1 E) none of these