Charlie's consumer surplus from the first slice of pizza he buys is greater than the consumer surplus from the second slice because of
A) decreasing marginal benefits.
B) increasing marginal benefits.
C) decreasing marginal costs.
D) increasing marginal cost.
A
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Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. Which expression of the output of this economy is most consistent with the concept of GDP?
A. This economy produces two-thirds oranges and one-third candy bars. B. This economy produces food valued at $1.20. C. This economy produces $7.00 worth of food. D. This economy produces 15 food items.
If ABC Printing is producing an output level of 100, where MR is $5 and MC is $3, then the firm is:
a. maximizing total profit. b. making too much profit. c. making $200 total profit. d. making $200 total loss. e. making an unknown amount of profit or loss.
The time and money spent by a monopoly firm on lobbying for favorable government policies is called
a. the capitalized value of the firm b. limit pricing c. rent-seeking activity d. administered pricing e. implicit cost
When the interest rate is low
a. much capital is demanded and few resources are available for current consumption. b. much capital is demanded and many resources are available for current consumption. c. little capital is demanded and few resources are available for current consumption. d. little capital is demanded and many resources are available for current consumption.