Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?
a. $13
b. between $11 and $12
c. $11
d. less than $11
a
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If the merger of two firms is challenged by an antitrust agency, one possible solution is for the firms to ________.
A) sell some of their assets to a third firm to avoid reducing competition. B) include more than three firms in the merger. C) include a third firm in the merger. D) sell their assets to each other to avoid reducing competition.
When contemplating the purchase of a resource, the pure monopsonist should do which of the following to maximize profit?
A) Purchase enough to make the marginal expenditure equal to the marginal revenue product. B) Purchase enough to make the average expenditure equal to the marginal revenue product. C) Pay a wage equal to the value of MRP at the intersection of MRP and ME curves. D) Pay a wage equal to the value of MRP at the intersection of AE and MRP curves.
In a two-sided market with network effects, the platform will most likely
A) set the same prices for the two sides of the market. B) set different prices for the two sides of the market. C) set a price of zero for both sides of the market. D) combine the two groups of the market before setting its price.
The following graph shows the supply of movie downloads. If price changes from $0.50 to $2.00, what will be the change in the market quantity supplied?
A. 7 movie per week B. 1 movie per week C. 8 movie per week D. 6 movie per week