In Figure 16-2 above, the line BF is
A) the MPK less the user cost of capital.
B) the user cost of capital less MPK.
C) the MPK.
D) the demarcation line for profitability.
C
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How many British pounds would it cost to buy a pair of American designer jeans costing $45 if the exchange rate is 2.00 dollars per British pound?
A) 22.5 British pounds B) 32.5 British pounds C) 12.5 British pounds D) 40 British pounds E) 30 British pounds
Limit pricing is also referred to as
A) competitive pricing B) fair pricing C) predatory pricing D) all of these choices.
The dollar price of a good relative to the average dollar price of all other goods is the good's:
A. real price. B. equilibrium price. C. market price. D. nominal price.
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The government could increase total economic surplus by:
A. subsidizing production of the vaccine. B. providing 250 doses of the vaccine for free. C. taxing production of the vaccine. D. encouraging people to pay each other to get the vaccine.