If the price of a firm's product is $10 and the firm faces a constant marginal cost of $4 that is equal to its (constant) average total cost, the profit from selling a unit of the firm's product from its inventory is equal to ________.
A) $6 B) $10 C) $4 D) $14
A) $6
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Which of the following is an example of a "damaged goods" strategy
a. A supermarket offers free parking space but charges higher for groceries b. A television reseller spends time making sure that the picture quality of the bargain priced sets is fuzzy c. A gift store hikes up the prices on gift wrapping services during its seasonal sale d. All of the above
In 1976, the cost of a movie was $4. In 2012, it's $9. If the CPI for 1976 is 56, and 228 for 2012, to find the real 2012 value of a 1976 movie, we would multiply its nominal value in 1976 by the ratio of:
A. (56/228). B. (228/56). C. (9/5). D. (5/9).
One way to solve the free-rider problem is:
A. tax everyone an equal amount for the good. B. have the government provide the good at a certain cost. C. make the good or service more excludable. D. tax those who truly value the good.
The Italian government collects a smaller amount of the taxes it is owed than the U.S. government. Other things being equal,
A. U.S. and Italian GDP should be equal. B. U.S. GDP may be higher than Italian GDP. C. U.S. GDP should be lower than Italian GDP. D. U.S. residents are better off than Italian residents.