Which of the following is a defining characteristic of a public good?
a. It is produced and distributed by the government.
b. The decision to produce it is made by the public through the voting process.
c. It is produced and distributed by private firms according to government regulations.
d. It is freely available to everyone once it is produced.
e. It is purchased by one government agency from another government agency.
D
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If the market for bicycles is efficient, then
A) no more bicycles can be produced. B) marginal benefit exceeds marginal cost. C) consumer surplus must be greater than producer surplus. D) it is not possible to produce more bicycles without sacrificing another, more highly valued good. E) consumer surplus must equal producer surplus.
Which of the following is NOT a government response to asymmetric information?
A) liability laws B) social regulation C) manufacturer's warranties D) government licensing
Economists use the term ______ to refer to an increase in the overall level of prices in the economy
Fill in the blank(s) with correct word
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed in the table. CustomerReservation Price($/Rental)A22B16C12D8E6F4If Island Bikes charges a single price to all of its customers, then what will be its daily economic profit?
A. $33 B. $27 C. $36 D. $26