ECO 304K Study Guide - Midterm Guide: Renting, Seating Capacity, Marginal Revenue
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ECO 304K Full Course Notes
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Practice questions on some of the topics to be covered in midterm 2: understand all the material for midterm 1. 2. review the homework problems and the questions and study problems at the end of your textbook chapters. A monopolist is currently selling 90 units of output at a price of per unit. It could sell one additional unit of output if it reduced its price to . 95 per unit. The paramount movie theatre has a seating capacity of 270. On any given night, there are 180 people who would potentially attend a movie at the paramount. The total cost (including movie rental, labor, and rent on the theatre) to the theatre owners of showing a movie at the paramount is per night. This cost is the same no matter how many people watch the movie. If they must charge the same price to all buyers, what price should the owners of the.