A movie theater can increase its profits through price discrimination by charging a higher price to adults and a lower price to children if
a. adults buy more popcorn than children.
b. the cost of showing a movie to children is less than the cost of showing a movie to adults.
c. it has some degree of monopoly-pricing power.
d. All of the above are correct.
c
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Based on the data in Table 3.1
A) Jesse should specialize in both goods. B) Jesse should specialize in painting kites and trade for snowboards. C) Jesse should specialize in painting snowboards and trade for kites. D) April should specialize in both goods.
The economic way of thinking includes:
A) more attention paid to benefits rather than the costs involved in any choice. B) the assumption that individuals choose to maximize some objective. C) emphasis on how choices affect total values rather than marginal values. D) the notion that the world has solved the problem of scarcity.