The above figure shows the market demand curve for telecommunication while driving one's car (time spent on the car phone). The current price is 35¢ per minute. What is the consumer surplus at the current price?
A) 924.5
B) 1075
C) 301
D) 1250
A
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A good is nonexcludable if:
A. there is no way to prevent a person from consuming or using it. B. more than one person can consume it at the same time without affecting its value to others. C. consumption of it involves perfect rivalry. D. consumption is completely excludable.
Suppose Matt's New Cars issues a bond in which they'll need to pay $10,000 in one year, which includes 4% interest. How much will they receive for the bond?
A) $9,600 B) $9,615 C) $10,000 D) $10,400
Which of the following statements is INCORRECT regarding the model for information products?
A) Average total costs slope downward, because average variable cost is constant, average fixed cost slopes downward. B) The firm maximizes profit by setting the price of its product equal to marginal cost. C) Marginal cost equals average variable cost. D) In the long run, accounting profit is positive.
A subsidy:
A. reduces the amount that buyers pay and increases the amount that sellers receive for a good. B. increases the amount that buyers pay and reduces the amount that sellers receive for a good. C. reduces both the amount that buyers pay and the amount sellers receive for a good. D. increases both the amount that buyers pay and the amount sellers receive for a good.