A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings. Given this information, to increase overall revenue the theatre owners should
a. Reduce the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows
b. Increase the ticket prices for the afternoon shows and reduce the ticket prices for the evening shows
c. Reduce the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
d. Increase the ticket prices for the afternoon shows and increase the ticket prices for the evening shows
c
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In a market economy, supply and demand are important because they
a. play a critical role in the allocation of the economy's scarce resources. b. determine how much of each good gets produced. c. can be used to predict the impact on the economy of various events and policies. d. All of the above are correct.
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $30, and the marginal cost of the sixth unit of output is $60 . What is the average total cost when six units are produced?
a. $10 b. $25 c. $30 d. $35