Half of all your potential customers would pay $10 for your product but the other half would only pay $8 . You cannot tell them apart. Your marginal costs are $4 . If you set the price at $8, the expected profit is:
a. $3
b. $4
c. $5
d. $6
b
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Tina withdraws $20,000 from her money market account to start up her own house cleaning business. Over that time, the account would have earned 3 percent interest. In order to properly account for all costs of her business, Tina must not forget:
A. the opportunity cost of $2,600. B. the fixed cost of $20,600 and the opportunity cost of $600. C. the fixed cost of $20,600. D. the opportunity cost of $600.
The bowed shape of the traditional production possibilities curve reflects the
A) negative side effects of economic growth. B) fact that not all resources are equally well-suited to producing all goods. C) costs of unemployment. D) problems of inequality.
What does a perfectly elastic demand curve look like? A perfectly inelastic demand curve? Explain
What will be an ideal response?
You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving yourself that you are willing to pay $21 for the same trip tomorrow. Determine if you have violated the law of demand based on your choices, and why or why not that is the case.
a. do not violate the law of demand because your preference for the product changed after you experienced the good. b. do violate the law of demand because the law of demand states that quantity demanded decreases as price increases. c. do not violate the law of demand because the law of demand states that quantity demanded increases as price increases. d. do violate the law of demand because you have chosen to buy the same amount of the product at two different prices.