Bridget drinks three sodas during a particular day. The marginal benefit she enjoys from drinking the third soda
a. can be thought of as the total benefit Bridget enjoys by drinking three sodas minus the total benefit she would have enjoyed by drinking just two sodas.
b. determines Bridget's willingness to pay for the third soda.
c. is likely different from the marginal benefit provided to Bridget by the second soda.
d. All of the above are correct.
d
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When Wal-Mart decides to build a new retail store in a town, it will decide to build a large store rather than a small store if the large store is expected to earn a greater economic profit
What other motive would Wal-Mart have for choosing to build a large store? A) A larger store will help Wal-Mart maintain its position as the leading retail company in the world more than a smaller store would. B) Because of economies of scale, the average total cost of production is less for a larger store than a smaller store. C) A larger store will give Wal-Mart greater political influence in the community. D) A larger store may deter entry into the town by a rival firm.
Using tradable allowances instead of quotas may be a better solution to the provision of common resources because they:
A. allocate the good in a less efficient way, and quotas do not. B. ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not. C. assign private property rights-and an incentive, as owners, which means common resource now get overused, and quotas do not. D. allow the government to set a specific amount of the good to be consumed, while quotas do not.
Recessions are not associated with which of the following?
a. increased bankruptcies b. falling profits c. falling incomes d. falling unemployment
A tariff is a
A. subsidy to workers harmed by U.S. trade with foreign countries. B. limit on the quantities of a good that can be imported each year. C. tax on exports that tends to make them cheaper for foreigners to buy. D. tax on imports that raises their prices and makes them less attractive to domestic consumers.