If a firm practices first-degree price discrimination, the firm must

In an indirect price discrimination mechanism, a firm _____.

Owners of a bowling alley have determined that the price elasticity of demand for bowling by seniors is -3.0, while the price elasticity of demand for others is -1.2. The profit-maximizing markups are _____. 

Fixed costs exist only in the ____ run, since firms ____ change the amount of capital employed.

Karam recently opened a bar and grill. Out of the following costs associated with his new business, which is (are) variable costs? (Select all that apply)

A perfectly competitive firm maximizes profit by producing 500 units of output, selling each unit for $5. The firm’s average variable cost is $2, and its average fixed cost is $1. What is the firm’s profit?

Suppose a firm’s total cost is given by TC = 400 + 20Q + 4Q2 and its marginal cost is given by MC = 20 + 8Q. What is the output level that minimizes the average total cost?

Suppose that a community health center finds that regardless of the number of physicians or nurse practitioners employed, it can always replace one family practice physician by using two additional nurse practitioners without affecting the quantity or quality of patient office visits. This finding implies that

Which of the following is an example of the sunk cost fallacy?

A firm is producing 4 units of output at an average total cost of $10. When the firm produces 5 units of output, average total cost rises to $20. What is the marginal cost of the fifth unit of output?