The private cost of a good or service is the cost borne by those who do not produce the good or service
Indicate whether the statement is true or false
FALSE
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Suppose you are the monopoly owner of a movie theatre. You can allow people to enter the theatre at zero marginal cost, and you can provide popcorn at a constant marginal cost of $0.50 per bag. You have two customers, Larry and Terry, who are identical twins. Larry never buys popcorn under any circumstances. If you charge the monopoly price of $1.00 per bag for popcorn, Terry will buy 2 bags of popcorn and earn $0.50 in consumer's surplus, and you will earn $1.00 in profit from popcorn sales. If you charge the competitive price of $0.50 per bag for popcorn, Terry will buy 4 bags of popcorn and earn $2.00 in consumer's surplus, and you will earn no profit from popcorn sales.
(i) Suppose that Larry is willing to pay up to $8.00 to see the movie and Terry is willing to pay up to $5.00 to see the movie. How much should you charge for admission to the theatre and how much should you charge for popcorn? (ii) Suppose that Larry is willing to pay up to $4.00 to see the movie and Terry is willing to pay up to $5.00 to see the movie. How much should you charge for admission to the theatre and how much should you charge for popcorn?
The view of mercantilists can be summarized as follows
A) to sell less to strangers yearly than we consume of theirs in value. B) to sell more to strangers yearly than we consume of theirs in value. C) to consume more of theirs in value than we sell to strangers. D) to consume the same amount as theirs in value as we sell to strangers. E) to sell gold and silver to strangers in exchange for services.
Which of the following determines equilibrium wages in perfectly competitive labor markets?
a. The government. b. Monopoly employers. c. Where the supply and demand of labor are equal. d. The requirements of a living wage.
________ implementing export promotion policies is Japan.
A. One of the least successful countries in B. The only developed country that has been successful in C. One of the most successful countries in D. The only developed country that has banned