If the bidders at an oral auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78
b. just under $78
c. $72
d. just over $72
d
You might also like to view...
An increase in the unemployment rate which is accompanied by an increase in the inflation rate is represented by a ________ the Phillips curve
A) movement down B) movement up C) upward shift of D) downward shift of
Consider a market with just one firm. The demand in the market is p = 18 – Q and the firm has a linear cost function C(Q) = 2Q
a. How much output will this firm produce. What will be the profit and consumers surplus? b. Suppose a second firm with the same cost function enters the market and the two firms compete in a Cournot style (simultaneous output choice). What will be the equilibrium price and quantity in the market? What is the total market profit and CS?
According to Franco Modigliani, the MPC for young adults
a. is relatively high because they are busy building families and careers b. is relatively low because their incomes are relatively small c. is about the same as the MPCs for middle-aged adults d. is lower than the MPCs for middle-aged adults e. will remain constant over their life-cycles
According to economic theory, consumers should support taxes on the producer, and producers should support taxes on the consumer.
a. true b. false