Refer to the information provided in Scenario 36.5 below to answer the question(s) that follow.SCENARIO 36.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Refer to Scenario 36.5. The total cost of telephone service for residents of Zoink in 2017 is ________ Bugabucks.
A. 26,125
B. 52,250
C. 156,750
D. 182,875
Answer: C
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Refer to Figure 15-12. Assume the firm maximizes its profits. What is the amount of consumer surplus?
A) $21 B) $124 C) $186 D) $332
In the two-period utility maximization model the opportunity cost of one unit of C1 is
a. one unit of C0. b. 1 + r units of C0. c. 1/(1 + r) units of C0. d. cannot be determined without more information.
If firms offer an efficiency wage:
a. the quantity of labor supplied will exceed the quantity of labor demanded.
b. the quantity of labor demanded will exceed the quantity of labor supplied.
c. the quantity of labor supplied will equal the quantity of labor demanded.
d. absenteeism is expected to increase.
Refer to Figure 4.6, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, if the market quantity supplied is 350, the price must be:
A. $10. B. $20. C. $30. D. $40.