(1) The Western National Park offers a discount on admissions to residents of the Eastern part of the country. (You show them your zip code at the gate.) What kind of pricing strategy is this?

a. first degree price discrimination

b. second degree price discrimination

c. third degree price discrimination

d. two part tariff

(2) The Western National Park offers a discount on admissions to residents of the Eastern part of the country. (You show them your zip code at the gate.) What does this imply about the elasticity of demand for the Western-National-Park attractions by residents of the Eastern part of the country?

a. They have more elastic demand than other visitors to the park

b.They have less elastic demand than other visitors to the park

c.The elasticity of their demand is the same as that for other visitors to the park

d.They might have more elastic or less elastic demand than other visitors to the park - we cannot tell

(3) The leader in the Stackelberg equilibrium

a.Never gets a lower profit than it would get in the Cournot equilibrium

b.Always gets a lower profit than it would get in the Cournot equilibrium

c.Sometimes gets a lower profit than it would get in the Cournot equilibrium

d.Gets the same profit as in the Cournot equilibrium

(4) All You Can Eat Restaurant has a monopoly in the town of Upper Glutton. Its production function is Q=40L, where L is the amount of labor it uses and Q is the number of meals produced. In order to hire L units of labor, the Restaurant must pay a wage of 40 + 0.1L per unit of labor. The demand curve for meals at the Restaurant is given by P = 5.25Q/1000. What is the profit- maximizing output for All You Can Eat Restaurant?

(5) A monopolist has a constant marginal cost and it is facing a linear demand curve. If the government imposes a quantity tax of $4 per unit of output, by how much does the monopolist's price rise?