Bucky's roommate, Becky, informs him that her ideas might have worked better. She calculates the elasticity of demand at Bucky's "black market" equilibrium and notices that he has spoiled his own market somewhat. She calculates that he could have done much better by tossing a few of the tickets in the roaring living room fire! [Note: Becky knows that Bucky can only sell tickets for a single price!

vi. By Becky's calculation, the point elasticity of demand at Bucky's black market equilibrium is ________.

A. -.375

B. -.143

C. -2.333

D. -.429

vii. Bucky realizes Becky's brilliance by noting that his decision to corner the market on tickets makes him a monopolist with a _________ and thus __________ is equivalent to maximizing profit in this case.

A. Zero Marginal Cost... Maximizing Total Revenue

B. Zero Marginal Cost... pricing at unit elastic point on the demand curve

C. Both are true

D. Neither are true

viii. Bucky should have tossed _________ tickets in the fire, sold the rest for _________ and realized a profit of _________.

A. 4000; $100/ticket.. $440,000

B. 6000, $120/Ticket.. $960,000

C. 4000, $120/Ticket.. $720,000

D. 6000, $120/Ticket.. $320,000

ix. Bucky's plan would still work if he bought only those tickets he intended to sell under Becky's plan, rather than wasting money buying tickets he would ultimately through into the flames!! (True or Fasle)