Refer to the table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out?Units ofActivity TotalCostTotalBenefit0$0$01$2$122$6$223$12$304$20$365$30$406$42$427$56$43
A. 3
B. 5
C. 2
D. 4
Answer: A
You might also like to view...
Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. Suppose that the first week of summer, Jenny charged 25 cents for an 8-ounce cup of lemonade, her next-door neighbor Sam charged 50 cents for an 8-ounce cup of lemonade, and Alex across the street charged 15 cents for an 8-ounce cup of lemonade. Assuming the market for lemonade is perfectly competitive, what is most likely to happen?
A. Everyone will start to charge 50 cents to maximize revenue. B. Eventually prices will equalize across all three lemonade stands. C. A price war will break out, and all of the kids will lower their prices. D. Each kid will keep his or her price at the original amount.
Use the figure below to answer the following question.
The total benefit of the second unit of X is ________.
A. 11 B. 4 C. 5 D. 17
Asarta Inc. is polluting into a nearby fishing stream; doing so benefits them $40,000 a year. The fishermen are unhappy as their trout are dying off. Typically, the fishermen can catch trout and sell it to a local market where they can earn about $8,000 a year. Currently, Asarta Inc. has the rights to use the stream as they see fit. Which of the following is an optimal solution according to the Coase Theorem?
A. Asarta Inc. could pay the fishermen $7,000 and keep polluting B. The fishermen could pay Asarta Inc. $4,000 to stop them from polluting C. Asarta Inc. could pay the fishermen $8,500 and keep polluting D. There is no optimal solution given the current property rights
Use a figure to illustrate the ineffectiveness of monetary policy to spur on an economy under a fixed exchange rate
What will be an ideal response?