The market demand curve for a public good
a. is the horizontal sum of all individual demand curves
b. is the vertical sum of all individual demand curves.
c. is upward sloping
d. is horizontal
e. does not exist
B
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Using a graph, illustrate what the market effects of a quota, a tariff, or a complete ban on imports would be
What will be an ideal response?
Lynn owns Dust Bunnies, a cleaning company. In one week, she is able to clean 9 houses. If she hires an employee, together they are able to clean 15 houses per week
If Lynn charges $100 to clean a house, and she pays her employee $400 a week, should she hire this employee? A) Yes, because the value of marginal product of the worker is less than the wage. B) Yes, because the value of marginal product of the worker is greater than the wage. C) No, because the value of marginal product of the worker is greater than the wage. D) No, because the value of marginal product of the worker is less than the wage.
You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock, you can expect to earn
A) above average returns since you will share in the higher profits. B) above average returns since your stock price will definitely appreciate as higher profits are earned. C) below average returns since computer makers have low profit rates. D) a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.
Output Total Cost015125233340448558670
Refer to Table 5.5. The marginal cost of the third unit of output is:
A. $0. B. $7. C. $8. D. $40.