Specialized investments:

If MRP > MLC, it means that a firm should

The managers of Cinemark, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.75 for tickets at Cinemark and adults have an own price elasticity of 1.25. If the managers have correctly determined the third-degree profit-maximizing price for adults is $20, what is the third-degree profit-maximizing price to charge students?

Sequential games can be solved using

If a firm is practicing third-degree price discrimination and is charging a price of $8 per unit to consumers in Group A and a price of $10 to consumers in Group B, which of the following is true?

If Home Depot offers customers a lower price per unit of lumber if the customer purchases more than 100 pieces of lumber, this is an example of ________.

Which of the following describes a Nash equilibrium?

To an economist, total costs include

In the game shown below, firms 1 and 2 must independently decide whether to charge high or low prices.  Which of the following are Nash equilibrium payoffs in the one-shot game? 

Taco Bell sells its hard shell tacos, taco seasoning, and taco sauce as a package and does not sell the individual products separately. This is an example of ________.