If the marginal cost for Big Ed's Used Car Emporium to advertise one additional day each week on a local TV station is $1,500, then Big Ed's should advertize that additional day
A) as long as the weekly marginal cost does not rise.
B) only if the marginal benefit the company receives each week is greater than $1,500 plus an acceptable profit margin.
C) as long as the marginal benefit the company receives each week is just equal to or greater than $1,500.
D) until the marginal benefit the company receives reaches zero.
C
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If property taxes were increased in a city, what would be the most likely effect on residential rents after two or three months? They would probably
A) fall. B) rise in proportion to taxes. C) rise more than in proportion to taxes. D) stay roughly unchanged.
Refer to Figure 5-9. The efficient output is
A) Q1. B) Q2. C) Q3. D) Q4.
The introduction of a new good
a. increases the cost of maintaining the same level of economic well-being. b. decreases the cost of maintaining the same level of economic well-being. c. has no impact on the cost of maintaining the same level of economic well-being. d. may increase or decrease the cost of maintaining the same level of economic well-being, depending on how expensive the new good is.
Why does the government grant patents to companies that research new drugs?
What will be an ideal response?