Question

Question 22 2 pts The Staples Center can sell ten LA Kings hockey seats for $200 each or eleven seats if it reduces the price to $180 each. What is the marginal revenue of the eleventh seat? $20 -$20 $180 -$200

Answer 1

1 - Option B

-$ 20

MR = TR of 11 unit - TR of 10 units

= 1980-2000

= $ (-20)

2 - Option D

How many employees the airlines has

This factor will not affect or attract the attention of the antitrust laws. The other options will lead to econimic profits , greater marker power , and hence they will attract the anti trust laws. Hence option D will be correct

3 - Option A

Yes barriers to entry are important for monopoly survival

Not all the barriers are considered illegal. The monopoly will only exists if it puts barriers to entry such as patent , economies of scale etc which are legal.