24. For a hotel to successfully price discriminate so that senior citizens are given a discount, the hotel must be able to A. lower its prices to younger customers too. B. prevent senior citizens from reselling their rooms to younger customers. C. offset the ec0nomic loss from charging senior citizens a lower price by lowering the marginal cost of renting rooms to Senior citizens. D. shift its demand curve rightward. E. determine if a senior citizen can pay a higher price. Each of the following is an example of a "vertical merger.\" - In 2006 Walt Disney (mass media and entertainment company) acquired Pixar Animation Studios (innovative animation studio). 0 Atextile company merging with a cotton yarn (raw materials) manufacturer 0 A merger between an online shopping website and a payments company 0 An automobile company merging with a steel manufacturer helps it manufacture its raw material in-house. 0 An automobile company can also merge with a tire company or an automobile battery manufacturer. 25A. What is a vertical merger? 253. What is one of the common elements in these examples? 28. A barometer is anything which indicates change (dictionary.com). Barometric Price Leadership occurs when the price leader in an oligopoly: A. acts to keep conditions the same in the industry (for example, no changes in prices). B. acts independently to undermine competitors within the industry {for example. lowering prices of their product). C. chooses to act (for example. setting prices) to indicate changing market conditions. D. decides not to act at all, knowing it has the largest share of the market. 29. The demand for labor is derived from: A. the demands for other variable economic resources. B. consumer demand for the good or service it is helping to produce. C. the cost-minimization rule. D. the supply of related economic resources. 30. The trade-off between work and leisure helps to explain: A. why the demand curve for a good or service is negatively sloped. B. the shape of the total product, marginal product and average product curves. C. the different elasticities of goods which are necessities and goods which are nonessential. D. why the individual supply curve for labor is backward bending. Price, Cost, Revenue Output 26. Suppose the Busy Bee Cafe is the monopoly producer of hamburgers in the "Restaurant at the End of the Universe." The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment [last Restaurant before you leave the Universe). What quantity will the Busy Bee Caf produce to maximize prot? A. 20 hamburgers per hour B. 50 hamburgers per hour C. 10 hamburgers per hour D. 0 hamburgers per hour E. 30 hamburgers per hour NA. TRUE or FALSE Monopolistic Competition and Oligopoly firms are alike in that non-price competition is common to both. 273. Give an example of non-price competition. 1. In a perfectly competitive market, the type of decision a firm has to make is different in the short run than in the long run. Which of the following is an example of a perfectly competitive firm's loorim decision? A. what price to charge buyers for the product B. how much to spend on advertising and sales promotion C. the profit-maximizing level of output D. whether or not to enter or exit an industry 2. If a perfectly competitive rm is selling its 100th unit of output for $42.00, its marginal revenue: A. will be less than 42.00. B. will also be $42.00. C. will be greater than $42.00. D. None of the ab0ve
