A promoter might charge less than the profit maximizing ticket price because
A. she knows that the facility has absolutely no alternative use on the day of the event.
B. the talent that she represents may wish to play to a full arena for their own ego.
C. like most promoters, she has deeply-felt charitable instincts.
D. all of the options are correct.
Answer: B
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Suppose that in the market for paper, demand is p = 100 - Q. The private marginal cost is MCp = 10 + Q. Pollution generated during the production process creates external marginal harm equal to MCe = Q. What specific tax would result in a competitive market producing the socially optimal quantity of paper?
What will be an ideal response?
People tend to eat more at all you can eat buffets than they would at any other restaurants. This is so because the cost of consuming an additional item at an all you can eat buffet is
a. negative b. zero c. positive d. None of the above