Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Refer to Exhibit 28-2. Which of the following would be mutually beneficial terms of trade between Karl and Adam?
A. 1 ton of apples per 2 1/2 tons of oranges
B. 1 ton of apples per 1 1/2 tons of oranges
C. 1 ton of apples per 1/4 ton of oranges
D. 1 ton of apples per 1/5 ton of oranges
B. 1 ton of apples per 1 1/2 tons of oranges
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The figure above portrays a total revenue curve for a perfectly competitive firm. The firm's marginal revenue from selling a unit of output
A) equals $0.50. B) equals $1.00. C) equals $2.00. D) cannot be determined.
Public franchises create monopolies by restricting
A) demand. B) prices. C) entry. D) profit.
A second-price auction
a. is also called an English auction b. is where the highest bidder wins and pays the amount of the next highest bid c. is where the sole remaining bidder wins and pays his winning bid d. all of the above
If Tony receives a pay raise and the price effect outweighs the income effect on his labor supply decisions, he will:
A. work more hours. B. work less hours. C. work the same hours no matter what. D. quit and not work at all.