ECON-B 251 Canvas questions and
answers
A monopolist faces a
a. downward sloping marginal revenue curve that is below demand
b. marginal revenue curve that is flat
c. downward sloping marginal revenue curve that is equal to demand
d. downward sloping marginal revenue curve above demand✔✔a
In Mickey Mouse Pricing with heterogeneous consumers, the price is
a. regulated
b. below marginal cost
c. equal to marginal cost
d. above marginal cost✔✔c
In Mickey Mouse Pricing with homogeneous consumers the entry fee is
a. an increasing function of the price
b. equal to consumer's surplus
c. a decreasing function of the price
d. smaller than consumer's surplus✔✔b
Selling IU basketball tickets for a game on January 23, 2023, at the same price
regardless of the purchase date
a. increases profit for IU
b. encourages secondary markets for tickets
c. discourages secondary markets for tickets
d. None of the above✔✔b
We see that Middling State University sells theater tickets to redheads at 20% below
the price charged to blonds. We can conclude that
a. the marginal cost of a theater seat is different for the two groups.
b. the price elasticity of demand for redheads is lower than for blonds
c. the two groups have the same price elasticity of demand
d. the price elasticity of demand for redheads is higher than for blonds✔✔d
There are two industries. In industry 1, sales are 12 billion, employment is 2000,
there are 4 large and dominant firms and the price- marginal cost markup is 50%. In
industry 2, sales are 15 billion, employment is 1800, there are 5 large and dominant
firms and the price -marginal cost markup is 75%. Then we would expect
a. more advertising in industry 2 than in industry 1
b. more advertising in industry 1 than in industry 2
c. the same amount of advertising in both industries
answers
A monopolist faces a
a. downward sloping marginal revenue curve that is below demand
b. marginal revenue curve that is flat
c. downward sloping marginal revenue curve that is equal to demand
d. downward sloping marginal revenue curve above demand✔✔a
In Mickey Mouse Pricing with heterogeneous consumers, the price is
a. regulated
b. below marginal cost
c. equal to marginal cost
d. above marginal cost✔✔c
In Mickey Mouse Pricing with homogeneous consumers the entry fee is
a. an increasing function of the price
b. equal to consumer's surplus
c. a decreasing function of the price
d. smaller than consumer's surplus✔✔b
Selling IU basketball tickets for a game on January 23, 2023, at the same price
regardless of the purchase date
a. increases profit for IU
b. encourages secondary markets for tickets
c. discourages secondary markets for tickets
d. None of the above✔✔b
We see that Middling State University sells theater tickets to redheads at 20% below
the price charged to blonds. We can conclude that
a. the marginal cost of a theater seat is different for the two groups.
b. the price elasticity of demand for redheads is lower than for blonds
c. the two groups have the same price elasticity of demand
d. the price elasticity of demand for redheads is higher than for blonds✔✔d
There are two industries. In industry 1, sales are 12 billion, employment is 2000,
there are 4 large and dominant firms and the price- marginal cost markup is 50%. In
industry 2, sales are 15 billion, employment is 1800, there are 5 large and dominant
firms and the price -marginal cost markup is 75%. Then we would expect
a. more advertising in industry 2 than in industry 1
b. more advertising in industry 1 than in industry 2
c. the same amount of advertising in both industries
