A firm’s short-run supply curve is equal to the firm’s:

Refer to the accompanying figure. This firm’s short-run supply curve is represented by the:

A firm’s willingness to supply its product in the short run is represented on a graph by the:

It’s easy to determine if a firm is making long-run production decisions by looking at its cost structure because, in the long run, a firm does not have any:

A firm’s willingness to supply its product in the long run is represented on a graph by the:

Three natural barriers to entry are:

provide incentives for Apple and Google to spend large amounts of money up front on research and development of new products

lost revenues associated with the price effect outweigh the revenue gains created by the

output effect.

This profit-maximizing firm’s total profit is equal to:

The equation of a firm’s marginal revenue curve is estimated to be price = 50 − Q (quantity), and the equations of their marginal cost curve is estimated to be price = 10 + 3Q. The profit- maximizing quantity for this firm is:

The equation of a firm’s marginal revenue curve is estimated to be P = 50 − Q (quantity), and the equations of their marginal cost curve is estimated to be P = 10 + 3Q. The profit-maximizing price for this firm is:

$25 and 100, respectively

the goods cannot be resold in the market

*EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.*

- What will be the amount of EJH Cinemas’ total revenue if the price is $7 per ticket?

*EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.*

- What is the amount of consumer surplus if the price is $7 per ticket?

*EJH Cinemas, a movie theater next to your university, attracts two types of customers: those who are associated with the university (students, faculty, and staff) and locals who live in the surrounding area. There are 10,000 university customers interested in purchasing movie tickets from EJH Cinemas, with a maximum willingness to pay of $7 per ticket. There are 20,000 local customers interested in purchasing tickets, with a maximum willingness to pay of $9 per ticket. The movie theater incurs a constant marginal cost of $4 per ticket. For simplicity, assume each customer purchases, at most, one ticket.*

- What will be the amount of EJH Cinemas’ total revenue if the price is $9 per ticket?

- What is the amount of consumer surplus if the price is $9 per ticket?

- If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the movie theater’s total revenue?

- If EJH Cinemas decides to practice price discrimination, charging $9 for a standard ticket available to everyone but only $7 for a ticket if you show your university identification (students, faculty, and staff), what will be the amount of consumer surplus?