Graphically, a market demand curve is found by
A) taking the average of all prices that people are willing to pay.
B) summing the quantities demanded by all individuals at each price.
C) summing the prices each consumer would pay for each quantity.
D) taking the average of the individual demand curves.
Answer: B
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Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAThe highest opportunity cost anywhere in Table 1.1 for Stealth bombers in terms of B-1 bombers is
A. 1 B bombers B. 0.5 B bombers C. 3 B bombers D. 2 B bombers
Alexandra has determined that studying an hour for her economics quiz will improve her grade on the quiz from a 75 to a 100. She also determines that this improvement is worth $20. To study for an hour for her economics quiz, however, she will have to work one fewer hour at her part-time job. Alexandra should:
A. study for the quiz as long as her hourly wage rate is more than $20. B. study for the quiz only if her hourly wage rate is exactly $20. C. not study for the quiz because earning a higher grade cannot have a dollar value. D. study for the quiz as long as her hourly wage rate is less than $20.
With total fixed cost of $400, a firm incurs an average total cost of $3 and average variable cost of $2.50. The amount of output produced by the firm must be
A. 800 units. B. 1,600 units. C. 400 units. D. 200 units.
Can both producer surplus and consumer surplus exist at the same time in a particular market?
What will be an ideal response?