Two economists from Northwestern University estimated the benefit households received from subscribing to broadband Internet service. The economists found that
A) the average consumer of broadband Internet service received a marginal benefit equal to $36.
B) one month's benefit to consumers who subscribe to broadband Internet service is about $890 million.
C) most consumers of broadband Internet service were not willing to pay more than $36 per month.
D) the consumer surplus from dial-up Internet service exceeded the consumer surplus from broadband Internet service.
B
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On a diagram of the planned expenditure function Ep and the 45-degree line, we find autonomous planned spending
A) where the 45-degree line hits the vertical axis. B) at each level of output by the vertical distance between the Ep and 45-degree lines. C) where Ep intersects the vertical axis. D) at each level of income by the vertical distance from the horizontal axis up to Ep.
Which of the following is true for both perfectly competitive and monopolistically competitive firms in the long run?
A) P = MC. B) MC = ATC. C) P > MR. D) Profit equals zero.
An individual consumes only hamburgers and milkshakes. The last hamburger consumed yields 25 utils of satisfaction, while the last milkshake consumed yields 10 utils of satisfaction. If the price of a hamburger is $2.50 and the price of a milkshake is $1.50, we can conclude that: a. the consumer should consume more hamburgers and fewer milkshakes. b. the consumer should consume more milkshakes
and fewer hamburgers. c. the consumer has achieved consumer equilibrium. d. the consumer should buy only milkshakes.
Tax policy can affect ____________________ and investment spending, resulting in a shift in the AD curve.
a. consumption b. savings c. production d. government