Refer to the scenario above. What is Wendy's opportunity cost of producing one earring?
A) 0.33 greeting cards
B) 0.50 greeting cards
C) 1 greeting card
D) 2 greeting cards
D
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During the year a country's income was $6.0 trillion and its consumption was $5.5 trillion. At the start of the year its wealth was $30.0 trillion. The country's wealth at the end of the year was
A) $36.0 trillion. B) $35.5 trillion. C) $30.0 trillion. D) $6.0 trillion. E) $30.5 trillion.
Of all the constant elasticity of substitution social welfare function, only the one with elasticity of infinity will always choose the efficient outcome from a second-best consumption possibility frontier.
Answer the following statement true (T) or false (F)
The table above shows the demand and costs for a single-price monopolist. The firm will
A) maximize profit by producing 3 units. B) maximize profit by producing 2 units. C) operate on the inelastic portion of its demand curve. D) operate on the unit elastic portion of its demand curve.
Why do price discriminating firms often offer lower prices to children and the elderly?
A. Such a strategy lowers the costs of the firm. B. Their demand for goods and services tends to be less elastic than other consumers. C. They have a lower willingness to pay than other consumers. D. These firms are more interested in equity than profit maximizing.