Use the following scenario to answer this question.Barb’s Slo-Smoke is a barbecue stand in Memphis, Tennessee. It operates as a pop-up shop on weekends. Imagine that Barb’s minimum average total cost (ATC) is $8.75 and that its minimum average variable cost (AVC) is $6.75. Assume there are no barriers to entry into or exit from this market.   What is the minimum price at which Barb’s Slo-Smoke will continue to open for business on weekends?

Consider the following scenario to answer this question.Lidia’s Pizza is a restaurant located near a college campus. The restaurant attracts two distinct types of customers—college students and local residents. The owners are considering offering a student discount of $2 off a large pizza, which is regularly priced at $12. There are 1,000 students interested in purchasing a large pizza, with a maximum willingness to pay of $10. There are 3,000 local residents interested in purchasing a large pizza, with a maximum willingness to pay of $12. Assume that each customer, at most, will purchase one large pizza and the marginal cost is $6.   What is the difference in the amount of total consumer surplus if Lidia’s offers a large pizza at the single price of $10 instead of the previous single price of $12?  

Use the following scenario to answer this question.Barb’s Slo-Smoke is a barbecue stand in Memphis, Tennessee. It operates as a pop-up shop on weekends. Imagine that Barb’s minimum average total cost (ATC) is $8.75 and that its minimum average variable cost (AVC) is $6.75. Assume there are no barriers to entry into or exit from this market.   Barb’s Slo-Smoke will suffer a loss but still be better off producing than shutting down if the price is equal to  

  One benefit of price discrimination is that

  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 __________ costs.

Why would a theme park practice price discrimination by age for admission but not for souvenirs? Which age group would pay more? Why?

  The perfectly competitive firm cannot influence the market price because

  Jane founded a startup that prototyped an electric car with a longer driving range than Tesla’s car. Unfortunately, she cannot find any investors to lend her enough money to market her product to consumers. Jane is facing which kind of barrier to entry?

  If a firm generates $370,000 in revenue, earns $210,000 in economic profit, and its explicit costs are $90,000, what are its implicit costs?

  If the price is greater than both the marginal cost and the average variable cost, what should a perfectly competitive firm do?