Author Question: Suppose a pizza restaurant has two pizza ovens that may be used to bake pizzas, so the restaurant ... (Read 650 times)

james9437 · **on:** Jul 1, 2018

Suppose a pizza restaurant has two pizza ovens that may be used to bake pizzas, so the restaurant has a maximum capacity constraint that affects the shape of the firm's short-run marginal cost curve.

What happens to maximum capacity segment of this curve if the firm adds another pizza oven? A) Shifts upward
B) Shifts downward
C) Shifts leftward
D) Shifts rightward

Question 2

For a perfect first-degree price discriminator, incremental revenue is

A) greater than price if the demand curve is downward sloping.
B) the same as the marginal revenue curve if the firm is a non-discriminating monopolist.
C) equal to the price paid for each unit of output.
D) less than the marginal revenue for a non-discriminating monopolist.