Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. What is the most Fun Cable Company would bid for the franchise?
A. $0
B. $62,500
C. $75,000
D. $112,500
Answer: B
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If the price is below the equilibrium price,
A) there is a surplus. B) there is a shortage. C) the supply curve will shift rightward. D) the supply curve will shift leftward. E) the demand curve will shift leftward.
Tax wedge is the difference between tax induced price paid by customer and the tax amount
A. True B. False C. Uncertain
All individuals on the same line in an organization chart have similar levels of responsibility and authority in the organization
Indicate whether the statement is true or false
Which of the following transactions is included in Gross Domestic Product?
A. a gift card that a mother gives her son B. a Social Security check received by a retiree C. tips received by a waitress who reports them to the IRS D. a used textbook that one student gives another student in exchange for a pair of headphones