Solved by verified expert :39)
Table 7.2 contains price, demand, and cost data for the Capri Theater, the only
first-run movie theater in a small town. What is its profit from non-students
under the student discount policy?A)
$200B)
$250C)
$350D)
$400
40)
Table 7.2 contains price, demand, and cost data for the Capri Theater, the only
first-run movie theater in a small town. What is its total profit under the
student discount policy?A)
$450B)
$550C)
$600D)
$650 41)
Table 7.2 contains price, demand, and cost data for the Capri Theater, the only
first-run movie theater in a small town. Should the firm adopt the single price
policy or the student discount policy?A)
the single price policy because the firm does not meet the three conditions
necessary to engage in price discriminationB)
the single price policy because price discrimination would not be legal for
this firmC)
the single price policy because it is more profitable than price discrimination
for this firmD)
the student discount policy because it is more profitable than the single price
policy 42)
Movie theaters often offer reduced rates for children under 10. This suggests
that demand for adult admission is ________ than demand for children’s
admission.A)
more elasticB)
less elasticC)
more variableD)
lower
43)
The cost of producing a hardback book is only about 20% higher than producing a
paperback book, yet the hardback price is typically three times the paperback
price. This suggests that demand for paperback books is ________ than demand
for hardback books.A)
more elasticB)
less elasticC)
more variableD)
lower Recall the Application about the reason for the high
price of movie popcorn to answer the following question(s).44)
Recall the Application. Suppose a low demander is willing to pay $8 for a
movie, while a high demander is willing to pay $12 for a movie and popcorn. The
theater could charge ________ for admission and ________ for popcorn for each
consumer to receive a consumer surplus of $2.A)
$8; $2B)
$10; $0C)
$6; $4D)
$9; $3 45)
Recall the Application. Suppose a low demander is willing to pay $8 for a
movie, while a high demander is willing to pay $12 for a movie and popcorn. If
the theater charged $7 for admission and $4 for popcorn, the low demander would
receive a consumer surplus of ________, and the high demander would receive a
consumer surplus of ________.A)
$1; $1B)
$5; $6C)
$3; $9D)
$15; $21 46)
Recall the Application. Suppose a low demander is willing to pay $8 for a movie,
while a high demander is willing to pay $12 for a movie and popcorn. If the
theater charged $8 for admission and $2 for popcorn, the low demander would
receive a consumer surplus of ________, and the high demander would receive a
consumer surplus of ________.A)
$2; $6B)
$-2; $4C)
$10; $22D)
$0; $2 47)
Recall the Application. Suppose a low demander is willing to pay $8 for a
movie, while a high demander is willing to pay $12 for a movie and popcorn. If
the theater charged $2 for admission and $10 for popcorn, ________ would be
willing to go to the movie.A)
only the low demanderB)
only the high demanderC)
both the low demander and the high demanderD)
neither the low demander nor the high demander
48)
Price discrimination can be profitable if consumers can resell the product.
