Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the efficient quantity of satellites is
A) 0.
B) 1.
C) 2.
D) 3.
D
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According to this Application, the volatility of energy prices can contribute to uncertainty in the economy. An increasingly uncertain future will tend to cause firms to
A) delay their investment decisions. B) continue with a stable flow of investment spending so as not to get trapped by a downturning economy. C) wait for significant GDP growth before reducing investments. D) rely on the government to make their investment decisions for them.
When supply falls and demand remains the same, equilibrium price _______ and equilibrium quantity __________.
Fill in the blank(s) with the appropriate word(s).
Explain the relationship between average fixed cost and marginal cost.
What will be an ideal response?
If graphed, the relationship shown would depict this economy's:
A. Laffer Curve.
B. Lorenz Curve.
C. Tax Freedom Curve.
D. Phillips Curve.