Refer to Scenario 10.9. What is the maximum amount that Maui Macadamia would be willing to spend in order to maintain its monopoly through rent seeking?
A) 0
B) 1,800
C) 5,400
D) 10,800
C
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The "law of demand" predicts that, other things being equal
A) an increase in the price of downloaded music decreases the demand for downloaded music. B) a decrease in the price of gasoline decreases the quantity of gasoline demanded. C) an increase in the price of pizza decreases the quantity of pizza demanded. D) an increase in the price of coffee decreases the quantity of tea demanded.
U.S. Treasury bills pay no interest but are sold at a ________. That is, you will pay a lower purchase price than the amount you receive at maturity
A) premium B) collateral C) default D) discount
When marginal cost exceeds marginal revenue,
a. marginal profit < 0. b. the firm should increase output. c. marginal profit + marginal cost > marginal revenue. d. marginal cost < marginal revenue ? marginal profit.
Suppose a consumer spends her income on two goods: music CDs and DVDs. The consumer has $200 to allocate to these two goods, the price of a CD is $10, and the price of a DVD is $20 . What is the maximum number of CDs the consumer can purchase?
a. 10 b. 20 c. 40 d. 50