If individuals are rational, they should choose actions that yield the:
A. largest economic surplus.
B. smallest economic surplus.
C. smallest total costs.
D. largest total benefits.
Answer: A
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A collusion can work if ________
A) a colluder can cheat without being detected B) a colluder values future monopoly profits more than current profits C) a colluder charges a price higher than his partners D) a colluder gives secret price discounts
Refer to Table 3.1. Which of the following cannot be true?
A) The consumer could be indifferent between A and B. B) A and C could be on the same indifference curves. C) The consumer could be indifferent between B and C. D) A and C could be on different indifference curves.
The price elasticity of demand for tickets to local hockey matches is estimated to be equal to 0.89 . In order to boost ticket revenues, an economist would advise:
a. decreasing the price of hockey match tickets because demand is elastic b. increasing the price of hockey match tickets because demand is elastic. c. not changing the price of hockey match tickets because demand is unit elastic. d. increasing the price of hockey match tickets because demand is inelastic.
The rent earned on marginal land is
a. zero. b. the average of all qualities of land. c. above the average of all qualities of land. d. below the average of all qualities of land.