A firm has two customers and creates a two-part tariff with a usage fee (P) that exceeds the marginal cost of production and leaves each customer with positive consumer surplus such that CS2 > CS1 > 0
If the firm sets the entry fee equal to CS2, then the number of customers that actually buy the product is equal to: A) zero.
B) one.
C) two.
D) We don't have enough information to answer this question.
B
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If the market price is less than a perfectly competitive firm's average total cost, what sort of profit or loss is the firm making?
What will be an ideal response?
Which of the following is not considered an automatic stabilizer?
a. Food stamp program for people with low incomes b. Welfare program for families with dependent children c. Medicaid, a health program for the poor d. Financial assistance for disabled people e. Unemployment programs that pay benefits to those who lose their jobs
Jack is traveling to Southeast Asia, Mariko has planned a visit to the Amazon, and Joe has to travel to Seattle for an advertising campaign. In the given scenario, which of the following statements is true?
a. Jack should use credit cards, Mariko should use traveler's checks, and Joe should use cash. b. Jack should use traveler's checks, Mariko should use credit cards, and Joe should use cash. c. Jack should use cash, Mariko should use traveler's checks, and Joe should use credit cards. d. Jack should use traveler's checks, Mariko should use cash, and Joe should use credit cards.
Explain the differences between the two-country, two-commodity model with constant costs of production and the two-country, two-commodity model with increasing costs of production. Adequately describe the production-possibilities curves for each country in each case. Describe free-trade production and the degree of specialization in each country under both cost situations.
What will be an ideal response?