(Long-Term Productivity Growth) Suppose that two nations
start out in 2018 with identical levels of output per work
hour-say, $100 per hour. In the first nation, labor produc-
tivity grows by 1 percent per year. In the second, it grows
by 2 percent per year. Use a calculator or a spreadsheet
to determine how much output per hour each nation will
be producing 20 years later, assuming that labor produc-
tivity growth rates do not change. Then, determine how
much each will be producing per hour 100 years later.
What do your results tell you about the effects of small
differences in productivity growth rates?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?