Alan Krueger conducted a survey of fans at the 2001 Super Bowl who purchased tickets to the game for $325 or $400. Krueger found that (a) 94 percent of those surveyed would not have paid $3,000 for their tickets, and (b) 92 percent of those surveyed
would not have sold their tickets for $3,000. These results are evidence of
A) the high value fans place on watching the Super Bowl in person, rather than on television.
B) the failure of consumers to take into account nonmonetary opportunity costs.
C) the failure of consumers to ignore sunk costs.
D) consumers being overly optimistic about their future behavior.
Answer: B
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a. singles bars will be popular b. computer dating services would reduce the amount of search c. supermarket price advertisements in the newspaper provide consumers no benefit d. as a consumer's wage rises, they search more, ceteris paribus e. common knowledge has no value
Providing information to internal users' decision making is the purpose of which of the following?
a. Management Reports b. Tax forms c. Financial statements d. Vendor list
When demand is inelastic, a decrease in price will result in a decrease in total revenue.
Answer the following statement true (T) or false (F)
The smallest size plant size at which the long-run average cost curve is at its minimum is called the
A. shut down point. B. minimum efficient scale. C. envelope. D. profit-maximizing scale of production.