If the demand price for the 2,000th unit of a good is $10, then
A. total consumer surplus for 2,000 units is $10,000.
B. the economic value of the 2,000th unit is $10.
C. consumer surplus for the 2,000th unit can be computed by subtracting the supply price for the 2,000th unit.
D. the net gain to society from the production and consumption of the 2,000th unit can be computed by subtracting the supply price from $10.
E. Both b and d
Answer: E
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Competition exists among sellers only if they
A) all set price equal to marginal cost. B) are price takers. C) are so numerous that no one of them can affect the price by restricting output. D) receive no special privileges from government. E) struggle to satisfy potential buyers.
Some popular reality television programs follow people who buy the contents of abandoned storage lockers at public auctions. In most cases, several storeage lockers are sold in sequence during a particular auction
Occassionally, one of the buyers will purposefully bid much more than the expected value of a particular storage locker in order to intimidate the other bidders. What is a plausible explanation for these excessive bids? A) The buyer is trying to establish a reputation that may affect the outcome of later auctions. B) The excessive bids may be rational if they occur during the last auction of the day. C) The bidder is trying to establish a first-mover advantage, but only if they occur during the first auction of the day. D) The excessive bids represent a form of tacit collusion among the buyers.
When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint.
Answer the following statement true (T) or false (F)
Which of the following organizations keeps track of all interstate commodity shipments by state of origin and state of destination in the United States?
A) Bureau of Trade Statistics B) Bureau of Transportation Statistics C) Bureau for Foreign Assistance D) Bureau of the Treasury Department