The cost of running an electrical utility includes costs for fuel, labor, and capital. In addition, there are sometimes costs associated with pollution from the utility, such an increased health care costs for people living near the utility. To an economist, the costs associated with the pollution resulting from additional electricity are:
A. marginal social costs.
B. marginal private costs.
C. the sum of marginal social costs and marginal private costs.
D. the difference between marginal social costs and marginal private costs.
Answer: D
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Jacko's rock band is putting out a new CD with its music label. The contract between the band and the label specifies that the band receive 25% of the gross revenues plus another $10,000 up front
The record label projects the demand for the album p = 50 - 0.003Q where p is the price per CD (in $) and Q is the number of CDs demanded. The cost (not including the band's salary) of producing the CD is constant at $5 per disc. a. Compute the joint-profit-maximizing price and quantity. b. Compute the profit maximizing price that the label will wish to set. c. What price will Jacko want his band's CD sold for? (Assume he only cares about money earned from the CDs.)
A pure monopolist is selling 7 units at a price of $12. If the marginal revenue of the 8th unit is $4, then the price of the 8th unit is
A) $10. B) $11. C) greater than $12. D) $4.
What was the percentage of GDP that was expended, in total, on health care?
A. 0.132% B. 12% C. 13.2% D. 16%
Refer to Exhibit 2-1. Scarcity exists
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