Econ Final

What is the condition for profit maximization?

MC1(Q1) = MC2(Q2) = MR(Q1 + Q2)

There is no market supply curve in

monopolistically competitive and monopolistic markets

Cinemas sometimes give senior citizens discounts. What is the possible privately motivated purpose for them to do so?

Senior citizens have a more elastic demand for movies than ordinary citizens

Which of the following statements is true?

The more elastic the demand, the lower the profit-maximizing markup.

One of the conditions under which price discrimination is profitable is

ability to identify consumer types. inability to resell the good. differences in demand elasticities.

If a monopolistically competitive firm's marginal cost increases, then in order to maximize profits, the firm will

reduce output and increase price