A 36-year-old male patient who suffers from persistent gastrointestinal distress and frequent diarrhea is 5 feet 11 inches tall and currently weighs 155 pounds. His weight six months ago was 178 pounds, which was his usual body weight for many years. According to the patient, his postprandial GI distress has caused a loss of interest in food and eating.  How is this patient’s % usual body weight defined?

A 36-year-old male patient who suffers from persistent gastrointestinal distress and frequent diarrhea is 5 feet 11 inches tall and currently weighs 155 pounds. His weight six months ago was 178 pounds, which was his usual body weight for many years. According to the patient, his postprandial GI distress has caused a loss of interest in food and eating.  What is this patient’s % weight change during the past 6 months?

The graph shows the short-run cost, revenue, and perceived demand curves for all firms in the convenience store market, which is a monopolistically competitive market.  What profitability will firms in this industry achieve in the short run?

A monopolist’s price is:

If a firm is producing a quantity where marginal revenue exceeds marginal costs, the firm should ____ existing levels of production in order to  ____.

Which of the following is one of the characteristics a business must possess in order to practice price discrimination?

Under perfect discrimination (first degree):

Adults have more money than teenagers and perhaps more elastic demand for video games than teenage video gamers.  Why might it be difficult to price-discriminate based on this fact?

How is a monopolistically competitive market like a competitive market?

Let’s look at the market for Gala apples.  Assume there are 300 producers and that MC=AC=$.40 per pound.  In a competitive market, price will be driven down to marginal cost.  Let’s assume that when P=MC, each apple grower produces 2 million pounds of apples for a total market production of 600 million pounds.  Now imagine that the apple growers form a cartel and each agrees to cut production to 1 million pound, which drives the price of apples up to $.70 per pound.  If a single apple grower broke from the cartel and produced an extra million pounds of apples, how much additional profit (approximately) will this apple grower make?