Author Question: Refer to Figure 16-7. The owners of the Lizard Lounge are considering the following four pricing ... (Read 37 times)

folubunmi

  • Hero Member
  • *****
  • Posts: 524
Refer to Figure 16-7. The owners of the Lizard Lounge are considering the following four pricing options:
 
  a. A single price scheme where the cocktail price equals the monopoly price.
  b. A single price scheme where the cocktail price equals the competitive price.
  c. A two-part tariff: a monopoly cocktail price and a cover charge that will generate total revenue equal to the area X.
  d. A two-part tariff: a competitive cocktail price and whatever cover charge that will generate a total revenue equivalent to the area X + Y + Z.
 
  Which pricing scheme(s) achieve the economically efficient outcome?
  A) schemes a and c B) scheme b C) schemes b and d D) scheme d only

Question 2

If the economy is producing at potential GDP
 
  A) the short-run aggregate supply curve must be vertical.
  B) inflation in the economy is at its natural rate.
  C) the Phillips curve must be positively sloped.
  D) unemployment is at its natural rate.



1_Step_At_ATime

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

C

Answer to Question 2

D



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

For a complete list of videos, visit our video library