Modern Principles: Macroeconomics
3rd Edition
ISBN: 9781429278409
Author: Tyler Cowen, Alex Tabarrok
Publisher: Worth Publishers
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Chapter 6, Problem 7FT
To determine
Whether the nominal GDP is higher than the real GDP by definition.
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A movie theater is showing two different movies: a Hollywood blockbuster (with 100 customers willing to pay $10 for a ticket, and 100 willing to pay $8) and an independent film that attracts 50 film buffs, willing to pay $20 each. Marginal costs are zero and neither movie can fill theater capacity. What is the theater's maximum profit if it cannot price discriminate (it must charge the same price for both movies) and if it can price discriminate (it may charge different prices for different movies)?
a. $2,000; $2,600
b. $1,500; $2,100
c. $1,500; $2,000
A movie theater is showing two different movies: a Hollywood blockbuster (with 100 customers willing to pay $10 for a ticket, and 100 willing to pay $8) and an independent film that attracts 50 film buffs, willing to pay $20 each. Marginal costs are zero and neither movie can fill theater capacity. What is the theater's maximum profit if it cannot price discriminate (it must charge the same price for both movies) and if it can price discriminate (it may charge different prices for different movies)?
a. $2,000; $2,600
b. $1,500; $2,100
c. $1,500; $2,000
What profi is most important in business ?
Chapter 6 Solutions
Modern Principles: Macroeconomics
Ch. 6 - Prob. 1FTCh. 6 - Prob. 2FTCh. 6 - Prob. 3FTCh. 6 - Prob. 4FTCh. 6 - Prob. 5FTCh. 6 - Prob. 6FTCh. 6 - Prob. 7FTCh. 6 - Prob. 8FTCh. 6 - Prob. 9FTCh. 6 - Prob. 10FT
Ch. 6 - Prob. 11FTCh. 6 - Prob. 12FTCh. 6 - Prob. 1TPSCh. 6 - Prob. 2TPSCh. 6 - Prob. 3TPSCh. 6 - Prob. 4TPSCh. 6 - Prob. 5TPSCh. 6 - Prob. 6TPSCh. 6 - Prob. 7TPSCh. 6 - Prob. 8TPSCh. 6 - Prob. 9TPSCh. 6 - Prob. 10TPSCh. 6 - Prob. 11TPSCh. 6 - Prob. 1CCh. 6 - Prob. 2CCh. 6 - Prob. 3CCh. 6 - Prob. 4C
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