The water and diamond paradox can be explained with the law of diminishing marginal utility and the comparative availability of water and diamonds
Indicate whether the statement is true or false
T
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Refer to the scenario above. What is Wendy's opportunity cost of producing one earring?
A) 0.33 greeting cards B) 0.50 greeting cards C) 1 greeting card D) 2 greeting cards
Refer to Table 6-5. Katie Graham owns a kayak rental service in Santa Barbara. Table 6.5 shows her estimated demand schedule for kayak rentals per week. She would like to increase her sales revenue by changing the price she charges for rentals
At present she charges $75. Based on the information in the table, Katie A) should raise her price to $80 to increase her revenue because the demand for kayak rentals is price inelastic. B) should raise her price to earn the most revenue. C) should lower her price to $60 to increase her revenue because the demand for kayak rentals is price elastic. D) is not able to increase her revenue by changing her price because the demand for kayak rentals is unit elastic.
Who won a Nobel Prize in economics for his work in the development of game theory?
A) John Nash B) Oskar Morgenstern C) Howard Schultz D) John von Neuman
When competitive forces in an industry are weak,
a. the absence of competition generally leads to overproduction. b. prices may exceed the amount consumers are willing to pay. c. the operational efficiency of private firms will be enhanced. d. higher prices and less than optimal production may result.