Figure 10.6 shows prices, demands, and cost data for the only restaurant in a small town. What is its profit from senior customers under the senior discount policy of a $7 senior price and a $10 non-senior price?

When there are two large open economies, the world real interest rate will be such that

A) desired international lending by one country equals desired international borrowing by the other country. B) desired international lending will be the same in both countries. C) desired international borrowing will be the same in both countries. D) desired international lending and borrowing will be zero in both countries.

Suppose that when a perfectly competitive firm produces 1,000 units of output, its total variable cost is $1,900. If the marginal cost of producing the 1,000th unit is $1.70, and if the market price of each unit of output is $1.70, then the firm should:

A. shut down. B. increase output. C. raise its price. D. continue to produce 1000 units.