Alex's production is worth $60 and Harry's is worth $40 . They decide to form a coalition and produce together such that their combined production is worth $135 . What is the maximum benefit Alex can earn while ensuring Harry does not leave the coalition?
a. $75
b. $96
c. $77.5
d. $94
D
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Economies of scope exist when
A) the total cost of production falls as the output increases. B) a firm hires specialized resources to produce a range of goods and services. C) a firm uses outsourcing to produce a good or service. D) the cost of producing a unit of a good falls as its output increases.
The phrase in the text, 'human beings are self-interested, not selfish' means that:
a. people are never selfish. b. people never act in a spiteful or belligerent manner. c. people never act in a fit of rage. d. people contribute to charities and they help others. e. people care only about themselves and their families.
A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
An increase in supply involves
A) A shift in the demand curve to the right. B) A shift in the supply curve to the right. C) Movement along the supply curve. D) None of the above.