Matt and Ann both decide to go to a concert with free tickets. We know that
A) both bear an opportunity cost since they could have done other things instead of see the concert.
B) both bear the same opportunity cost since they are doing the same thing.
C) the cost of going to the concert is greater for the one who had more choices to do other things.
D) neither bears an opportunity cost because the tickets were free.
Answer: A
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Perfect price discrimination is
A) realistic. B) practiced by many firms. C) a purely theoretical possibility. D) very common.
The above figure shows the demand and supply curves in the market for milk. Currently the market is in equilibrium. If the government establishes a $4 per gallon price support, estimate the change in p, Q, and social welfare
What will be an ideal response?
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a. 1.71 b. 2.55 c. 3.55 d. 4.29