Beverly spends $100 on a teeth whitening kit. After one application, her gums are inflamed and it feels like her mouth is on fire. Beverly is trying to decide whether to apply the treatment again, or throw the kit away. The opportunity cost of a second application is:
A. $100.
B. the pain and suffering involved with the second application.
C. $100 + the pain and suffering involved with the second application.
D. $100 + the pain and suffering involved with the first and second application.
B. the pain and suffering involved with the second application.
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What does it mean for a producer to internalize an externality?
A) The producer is limiting outsourced production. B) The producer is prohibited from producing products which generate externalities. C) The producer must find ways to address externality problems which extend beyond geographic borders. D) The producer is forced to factor into production costs the cost of the externalities created in their production of output.
A(n) ________ relates each possible outcome to its probability of occurrence
A) probability distribution B) frequency C) expected value D) coin toss
The price of an airline ticket rises as the amount of time between purchase and flight departure gets smaller. The airlines base the policy on the assumption that
a. consumers are not aware of airline prices. b. consumer demand is unrelated to prices. c. consumer demand becomes more elastic as departure time approaches. d. consumer demand becomes more inelastic as departure time approaches.
Suppose the production function is given by Q = 3K + 4L. What is the marginal product of capital when 10 units of capital and 10 units of labor are employed?
A. 11 B. 3 C. 45 D. 4