The student government associations at several universities have experimented with purchasing bicycles to leave around campus for everyone's use. Anyone who needs the bike can use it, and they are not allowed to lock the bike up or take it home, but rather must leave it on campus for someone else to use. Economic theory would predict that
a. students will take better care of these commonly owned bicycles than they do their own bicycles.
b. students will take equally as good care of these commonly owned bicycles as they do their own bicycles.
c. students will not take as good of care of these commonly owned bicycles as they do their own bicycles.
d. because universities have a lot of money, these bikes will be better maintained than the ones owned privately by college students who tend to have little money.
C
You might also like to view...
The most common form of "forced savings" in the U.S. is:
A. Medicare. B. unemployment insurance. C. Social Security. D. FICA.
The real rate of interest equals 3%, and the expected rate of inflation equals 2%. The nominal rate of interest is
A. 0%. B. 5%. C. 1%. D. -1%.
Deterring entry might require a firm to
A) price their product closer to the competitive price than to the monopoly price. B) price their product closer to the monopoly price than to the competitive price. C) drop output almost to zero to show the consumers "who's boss." D) drop price almost to zero to get price below marginal cost.
Refer to the information. Over the $9-$7 price range, demand is:
A. perfectly elastic.
B. perfectly inelastic.
C. elastic.
D. inelastic.