When the price of perfume changes from $24 to $26, the quantity supplied increases from 100 jars to 150 jars. What is the elasticity of supply of perfume?
A) 0.04
B) 25.0
C) 5.0
D) 0.2
C
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Suppose two individuals, Pooh and Piglet, desire protection (provided by Tigger) for their community, The Hundred Acre Wood, from heffalumps. Protection is a public good
The marginal cost of protection as well as Piglet's and Pooh's marginal benefits from protection are in the table above. What is the quantity of protection that achieves the maximum net benefit? A) 1 hour per day B) 2 hours per day C) 3 hours per day D) 4 hours per day
What are the five most important variables that cause the market demand curve for labor to shift?
What will be an ideal response?
When a negative externality exists in a market, the cost to producers
a. is greater than the cost to society. b. will be the same as the cost to society. c. will be less than the cost to society. d. will differ from the cost to society, regardless of whether an externality is present.
A potential problem with cross-section cost data is that
A. at least one input is fixed over time. B. different firms face different input prices. C. nominal cost data include the effect of inflation. D. both a and b E. none of the above