Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of a bushel of apples is:
A. 3/20 watermelons.
B. 1/20 watermelons.
C. 1/40 watermelons.
D. 1/30 watermelons.
B. 1/20 watermelons.
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Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. The price of a CD is $15. The indifference curves in the figure above (I1, I2, and I3 ) reflect Kristen's preferences. If the price of a DVD is $22
50, then Kristen buys ________ DVDs; if the price of a DVD is $18.00, then Kristen buys ________ DVDs. A) 12; 14 B) 5; 10 C) 10; 15 D) 7.5; 12.5
Refer to the table below. The perfectly competitive firm has a random demand with a 50 percent chance of being $7 and a 50 percent chance of being $9. What quantity should the firm produce to maximize its expected profit?
The above table summarizes the marginal cost of production at various quantity levels for a perfectly competitive firm.
A) 130
B) 110
C) 120
D) 140
Which would a taxpayer in the 35% tax bracket prefer: a $2,000 tax exemption or a $700 tax credit? What if the taxpayer were in the 25% tax bracket?
What will be an ideal response?
The Coase bargaining solution applies to a situation when there is a ________ number of affected parties, and the transactions costs of bargaining are relatively ________.
A. large; high B. large; low C. small; high D. small; low