In order to maximize the net gains from an activity, a Maeva should choose the quantity at which the marginal:
a. benefit exceeds the marginal cost by the greatest amount.
b. benefit is zero.
c. benefit is equal to the marginal cost.
d. cost is lowest
Ans: c. benefit is equal to the marginal cost.
You might also like to view...
A local restaurant offers an "all-you-can-eat" salad bar for $3.49. However, with any sandwich, a customer can add the "all-you-can-eat" salad bar for $1.49. This is an example of
A) peak-load pricing. B) second-degree price discrimination. C) a two-part tariff. D) tying. E) none of the above
Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate is considering whether to play the second game. If Kate only cares about the expected value of the outcome and does not care about risk, she should:
A. not play since she never wins anything. B. play if the cost of playing the game is greater than the expected value of the payoff. C. compare the cost of playing the game with the value of her time. D. play if the cost of playing the game is less than the expected value of the payoff.
According to the aggregate supply-aggregate demand model, an expansionary fiscal policy will, in the long run,
a. have the opposite effect of an expansionary monetary policy b. increase both real GDP and the price level c. increase real GDP and decrease the price level d. increase real GDP and leave the price level unchanged e. increase the price level and leave real GDP unchanged
All of the following are ways to control currency convertibility EXCEPT ________.
A) import licenses B) multiple exchange rates C) import deposits D) purchasing power parity