Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200/(1 + S). Patrols cost $25 per hour. If each store provided security independently, how much would each store purchase?
A. 15 person-hours of patrols per week
B. 7 person-hours of patrols per week
C. 8 person-hours of patrols per week
D. 16 person-hours of patrols per week
B. 7 person-hours of patrols per week
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A monopoly is
A) a price taker. B) able to ignore the demand for its product when setting its price. C) able to set the price for its product. D) able to earn only a normal profit in the long run. E) a firm with no marginal revenue curve.
If the Boston Red Sox baseball team is currently charging a ticket price where its demand is inelastic, then the Red Sox's marginal revenue is
A) negative. B) positive. C) zero. D) maximized. E) undefined.
Answer the following statement(s) true (T) or false (F)
1. Fiscal policy refers to the government's ability to print money. 2. Kobe beef, which some consider the best beef in the world, is produced in Japan and sold in the U.S. (in extremely limited quantities); this is an example of a U.S. import.
Microeconomics differs from macroeconomics in that microeconomics focuses on:
A. the performance of the entire economy. B. government policies designed improve the performance of the national economy. C. the choices made by individuals and the implications of those choices. D. issues such as inflation, unemployment and economic growth.