Suppose that the price of a bottle of soda is $2. Vonda's marginal cost of production is $1.25 for the first bottle, Galiela's marginal cost of production is $1.50 for the second bottle, Gretchen's marginal cost of production is $1.75 for the third bottle, and Matt's marginal cost of production is $2 for the fourth bottle. Which producer gets no producer surplus?
A. Vonda
B. Galiela
C. Gretchen
D. Matt
Answer: D
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Adam Smith wrote that a person should never attempt to make at home what it will cost him more to make than to buy
a. True b. False Indicate whether the statement is true or false
For any given quantity, the price on a demand curve represents the marginal buyer's willingness to pay
a. True b. False Indicate whether the statement is true or false
If public goods were marketed like private goods, then
A. Public goods would be overproduced. B. The economy would be outside the production possibilities curve. C. The optimal mix of output would occur at the market equilibrium. D. There would be market failure.
Using the above table, the national income is (in billions of dollars)
A. 8,950. B. 6,850. C. 7,250. D. 8,050.