Refer to Table 2-19. What is Betty's opportunity cost of making a statue?
A) 1/2 of a bench B) 1.4 statues C) 1/3 of a bench D) 2 benches
A
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The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, compared to a monopoly who charges a single price, the change in total surplus is
A) A + B + C. B) A + B + D. C) A. D) C + E.
Which of the following pairs is the best example of complements?
a. milk and cheese b. coffee and tea c. CDs and audio tapes d. hiking boots and athletic shoes e. bagels and cream cheese
Which one of the following statements most accurately indicates the basic motivation for behavior?
a. Individuals are motivated primarily by selfish desires; thus, personal costs and benefits influence their actions. b. Individuals are motivated primarily by humanitarian concerns; therefore, personal costs and benefits exert little influence on most of their actions. c. Individuals are motivated by a variety of forces; however, changes in personal benefits and costs influence the choices of both selfish and humanitarian individuals. d. Individuals are motivated by a variety of forces; however, changes in personal benefits and costs affect behavior only when individuals are motivated by selfishness.
If a restaurant in a summer tourist area is highly profitable during the summer months but unable to cover even its variable costs during the winter months, the restaurant should
a. go out of business immediately, because no firm should continue to operate if it is losing money; doing so is contrary to the idea of profit maximization. b. go out of business as soon as the summer is over; losses should never be tolerated. c. operate during all months of the year as long as its profits during the summer exceed its losses during the winter. d. shut down during the winter, but continue operating during the summer as long as the summer profits exceed the losses (fixed costs) during the winter shutdown period.