Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report
Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. If the price of the report is $800 per copy
A) only Daphne will purchase Joss's services and Joss will undertake the job for her.
B) both Iris and Daphne will purchase Joss's services and Joss will undertake the job.
C) only Daphne will want to purchase Joss's services but Joss will not be willing to do the work.
D) neither Iris nor Daphne will commission the work.
C
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Tariffs and quotas tend to
a. raise prices domestically but make more goods available b. raise prices domestically and channel more domestic goods into exports c. raise prices domestically and reduce availability of goods d. lower prices domestically but reduce availability of goods e. none of the above
The returns to scale of the production function Q = 50 L0.4 K0.2 are
A) 50. B) .6. C) .8. D) 500.6.
You bought some shares of stock and, over the next year, the price per share increased by 5 percent, as did the price level. Before taxes, you experienced
a. both a nominal gain and a real gain, and you paid taxes on the nominal gain. b. both a nominal gain and a real gain, and you paid taxes only on the real gain. c. a nominal gain, but no real gain, and you paid taxes on the nominal gain. d. a nominal gain, but no real gain, and you paid no taxes on the transaction.
Suppose that an individual can hold her wealth in only two forms: money and bonds. A _______________ in the bond market would then imply that there is a ________________ in the money market
A) surplus; surplus B) shortage; shortage C) surplus; shortage D) shortage; surplus E) c and d