A fruit retailer buys 50 pounds of apples from the wholesale market every day. The retailer has observed that 20% of the apples bought each time are not of good quality
Because it is not possible for the retailer to check each apple before buying, how much should he pay for each pound if he values good apples for $1.40 per pound while he has a value of zero for bad quality apples? A) $1.12 per pound
B) $1.20 per pound
C) $1.40 per pound
D) $2 per pound
A
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Given the information in Scenario 4.3, what is the point price elasticity of demand?
A) -1/3 B) -1/6 C) -1/10 D) -1/24 E) -5/24
The first money issued by a United States' governmental authority were
a. bank notes issued by the United States Treasury 1766, 10 years before the founding of the Republic b. silver certificates issued by the Federal Reserve on the eve of the American revolution c. Continental Notes issued by the Continental Congress to finance the Revolutionary War d. greenbacks issued by the Treasury to finance the War of 1812 e. gold certificates issued by the Federal Reserve during American revolution
The airline dominating Charlotte, North Carolina, once contended that it could not overcharge for fear of potential competition, if not at Charlotte, then at Raleigh, a two-hour drive away. Do you find this argument compelling, given the theory of contestable markets?
Beyond the point of efficient scale, marginal cost pulls the average total cost upward
a. True b. False Indicate whether the statement is true or false