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