The total willingness to pay for public restrooms in a city is given in the table below:
Number of Restrooms Total willingness to pay
1 $208,000
2 $199,000
3 $150,000
4 $85,000
If the marginal cost of building a public restroom is $208,000, how many restrooms will be built?
A) 1
B) 2
C) 3
D) 4
A
You might also like to view...
One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it is an artifact of mismeasurement. This explanation would require that production of
A) goods is underestimated. B) goods is overestimated. C) services is underestimated. D) services is overestimated.
A firm uses ________ for goods which the consumer takes pride in owning
A) price skimming B) prestige pricing C) penetration pricing D) predatory pricing
When the Fed conducts open-market sales,
a. it sells Treasury securities, which increases the money supply. b. it sells Treasury securities, which decreases the money supply. c. it auctions term loans, which increases the money supply. d. it auctions term loans, which decreases the money supply.
A five-cent deposit on beer bottles
A) provides a positive incentive because it rewards people for recycling. B) provides a negative incentive because it punishes people who do not recycle. C) is an irrational policy, because it adds to the prices of beer. D) is an irrational policy, because it fails to take into account self-interest.