Which of the following is an example of a product that is nonexcludable and nonrival?
A) a motorcycle
B) the court system
C) Western lowland gorillas
D) a NASCAR event
B
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A firm wanting to maximize profits should operate in such a way that
A) the MRP of each input is equal to or greater than its MFC. B) MRP equal MFC in the input market but MC must exceed MR in the output market. C) marginal revenue must be equal to the marginal revenue product. D) none of the above.
Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Joe should
A. work part-time. B. quit his job. C. keep the job. D. It is impossible to say with the information given in the problem.
Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A) P > MC B) P = MC C) P = MR D) P < AVC
Why is water much cheaper than diamonds even though water is essential to human lives while diamonds are NOT?
What will be an ideal response?