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Which of the following statements are true? Check all that apply. -Total societal welfare is better with the admission fee than under the mayor's plan.
Which of the following statements are true? Check all that apply.
-Total societal welfare is better with the admission fee than under the mayor's plan.
-Consumers are worse off with the admission fee than under the mayor's plan.
-Revenue per person is the same regardless of whether an admission fee or the mayor's plan is used.
The residents of the town Ectenia all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $2,400,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visits: Qp = 10 P, where P is the price of admission. On the following graph, use green points (triangle symbol) to graph the museum's average-total-cost curve at the following quantities: 1,000 visits, 3,000 visits, 4,000 visits, 6,000 visits, 8,000 visits, and 12,000 visits. Then use the orange line (square symbol) to graph the museum's marginal-cost curve.
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