Why do some people tip generously at restaurants to which they never plan to return?
What will be an ideal response?
Some people tip generously at restaurants to which they never plan to return due to their social preferences, meaning that the individual's benefits are defined not only by his or her payoffs but also by the payoffs of others. Social preferences often play an important role in economic transactions.
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The figure above shows the demand and cost curves for a single-price monopoly. What level of output maximizes the firm's economic profit?
A) 0 units B) 20 units C) 30 units D) 50 units
Let Kj and Lj denote the capital and labor stocks of country j (j = A,B), then country A is said to be capital abundant relative to country B if
A) KA > KB. B) KA/LA > KB/LB. C) LA < LB. D) All of the above.
A tariff is a tax on imports imposed by the country that is importing the goods.
Answer the following statement true (T) or false (F)
If an individual perfectly competitive firm charges a price ________ the industry equilibrium price while competitors charge the equilibrium price, the firm will sell all that it produces but forgo revenue that it could have had.
A. equal to B. above C. below D. More information is needed to answer the question.