Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates
The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase? A) 2
B) 5
C) 0
D) 1
A
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The primary purpose of a conglomerate merger is
a. to achieve economies of scale available through increased production of a single good. b. to allow for decentralized management by spreading authority of a number of people spread throughout company locations. c. to avoid adverse effects of business cycles through diversification. d. to reduce competition by purchasing and then closing competing firms.
Farmer McDonald sells wheat to a broker in Kansas City, Missouri. Because the market for wheat is generally considered to be competitive, Mr. McDonald maximizes his profit by choosing
a. to produce the quantity at which average variable cost is minimized. b. to produce the quantity at which average fixed cost is minimized. c. the quantity at which market price is equal to Mr. McDonald's marginal cost of production. d. the quantity at which market price exceeds Mr. McDonald's marginal cost of production by the greatest amount.
When a central bank sells bonds, cash reserves throughout the financial system increase, interest rates fall, and investment spending increases
Indicate whether the statement is true or false
When an economics student draws a supply and demand diagram to model an increase in the income, she is assuming this change happens
A. ceteris paribus. B. ipso facto. C. semper fidelis. D. de facto.