Riva crafts and sells hard cider as a part-time job. She can bottle and sell four cases in a week. She is considering hiring her friend Atul to help her. Together, Riva and Atul can bottle and sell seven cases per week. What is Atul's marginal product?
a. 2 cases
b. 3 cases
c. 5 cases
d. 7 cases
b
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__________ will change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.
a. Supply b. Price levels c. Consumption d. Demand
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.If both players choose their dominated strategy they will each earn ________, and if both players choose their dominant strategy they will each earn ________.
A. $900; $1,350 B. $1,000; $900 C. $500; $1,350 D. $900; $1,000
Use the following graph for a monopolistically competitive firm to answer the next question.
If curve (2) represents ATC and line (3) represents demand, then curve (1) and line (4) would be
A. MC and TR, respectively. B. TC and TR, respectively. C. AVC and MR, respectively. D. MC and MR, respectively.
Supposing a college education is choosing between a modestly expensive school ($100,000 over 4 years) and a less expensive school ($40,000 over 4 years), the student should
A. choose the more expensive school only if the present value of the difference in salary is $60,000 or less. B. choose the more expensive school only if the present value of the difference in salary is $60,000 or more. C. choose the more expensive school only if the difference in salary will total $60,000 or more. D. choose the more expensive school only if the difference in salary will total $60,000 or less.