The figure above shows the supply curve for soda. The market price is $1.00 per soda. The producer surplus from all the sodas sold is
A) $0.00.
B) $15.00.
C) $20.00.
D) $1.00.
E) None of the above answers is correct.
E
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"Perfectly competitive firms have total control over the price they set for their product." Explain why the previous statement is correct or incorrect
What will be an ideal response?
When the R2 of a regression equation is very high, it indicates that
A) all the coefficients are statistically significant. B) the intercept term has no economic meaning. C) a high proportion of the variation in the dependent variable can be accounted for by the variation in the independent variables. D) there is a good chance of serial correlation and so the equation must be discarded.
Assume that Joe and Sarah, from the figure shown, are also dating, in addition to working together on the joint school project. Further assume that Joe is madly in love with Sarah, who is an excellent student. Sarah tells Joe that she will break up with him if he does not put forth high effort on this project. This future punishment by Sarah is an example of:
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
A. a commitment strategy.
B. an effort optimization strategy.
C. an ultimatum.
D. a bargaining strategy.
Suppose that the average price of refrigerators has fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping? Explain