If people posing as a vacationers were able to purchase large ...

[cool]

If people posing as a vacationers were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers
 
  A) group price discrimination on the part of airlines would no longer be profitable.
  B) group price discrimination on the part of airlines would no longer be profit maximizing.
  C) the airlines would respond by raising further the price charged to business flyers.
  D) the people reselling would not earn any economic profit.

Question 2

At the competitive equilibrium quantity supplied equals quantity demanded in all markets.
 
  Indicate whether the statement is true or false

[bpool94]

Answer to Question 1

B

Answer to Question 2

True . When the MRS = MRT = ratio of prices, the optimal product mix is produced efficiently and firms sell at marginal cost.

[cool]

Thank you

[bpool94]

No problemo