Recent research suggests that if Apple switched from uniform pricing of its iTunes to two-part pricing,
A) total welfare would increase, but consumer surplus would decrease.
B) total welfare and consumer surplus would increase.
C) total welfare would decrease, but consumers surplus would increase.
D) total welfare and consumer surplus would decrease.
B
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A marginal propensity to consume of 0.75 and a marginal propensity to import of 0.05 are associated with an open-economy spending multiplier of 3.33
a. True b. False Indicate whether the statement is true or false
For a firm in monopolistic? competition, selling costs
A) increase costs and reduce profits.
B) always increase demand.
C) can change the quantity produced and lower the average total cost.
D) can lower total cost.
E) have no effect on the quantity sold.
The optimal rate of pollution occurs where
A. The marginal benefit of pollution abatement is zero. B. Pollution is reduced to zero. C. MR = MC for the production of the good that produces pollution. D. The marginal benefit equals the marginal cost of pollution abatement.
In the above figure, the economy is initially at point B. If the Fed decreases the quantity of money, there is
A) a movement to point C. B) a movement to point A. C) a shift to AD2. D) a shift to AD1.