If the price of a soda is $0.50, and the marginal utility of the first soda consumed is valued at $2, then the consumer surplus of that first soda is
a. $0.50
b. $1.50
c. $2.00
d. $2.50
e. $4.00
B
You might also like to view...
In the above table, the average variable cost of producing 14 units of output is
A) $0.175. B) $5.71. C) $7.86. D) $10.00.
A factor market is any place or process where
A. Finished services are bought and sold. B. Land, labor, or capital is bought and sold. C. Finished goods are bought and sold. D. None of the choices are correct.
The spending multiplier is defined as:
A. the ratio of the change in equilibrium real GDP to the initial change in spending. B. the change in initial spending divided by the change in personal income. C. 1 / (marginal propensity to consume). D. 1 / (1 ? marginal propensity to save).
Refer to the normal-form game of price competition shown below.Firm AFirm B??CD?A0,75,2?B5,10,8What are the pure Nash equilibrium strategies for this game?
A. {(A, C)}. B. {(A, C) and (B, D)}. C. {(B, C)}. D. There is no pure strategy Nash equilibrium to this game.