If Sam is willing to pay $50 for one good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam's consumer surplus is:
a. $10 b. $40.
c. $70 d. $100.
c
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If Happy Campers, Camping R Us, and Camp with Us are all competing in the camping market and Happy Campers consistently is the first to change prices, Best Beds might be ________.
A) signaling to the other firms to consistently raise their prices B) signaling to the other firms to consistently maintain their prices C) signaling to the other firms to consistently lower their prices D) offering to be the price leader
Which of the following four elements contribute to GDP in the expenditure approach?
a. Consumption spending, private investment, government purchases, net exports b. Consumption spending, business investment, government purchases, imports c. Consumption of services, private investment, government consumption, exports d. Consumption of goods, private investment, government investment, government consumption e. Consumption of durable goods, private investment, government purchases, net exports
Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to
a. care for resources and use them beneficially. b. innovate and introduce new products that are highly valued relative to their cost. c. produce goods efficiently. d. all of the above are correct.
Initially, a pharmacy with a volume of 35,000 had fixed costs of $200,000 and variable costs of $140,000. After remodeling, its fixed costs fell to $100,000, even though its volume and variable costs were unchanged. As a result,
A. its infra-marginal costs will be lower. B. its incremental costs will be lower. C. its average costs will be lower. D. All of the above