When Bob's willingness to pay for a cup of coffee is $1, and the price of a cup of coffee is $1:
A. Bob will get the same surplus whether he purchases the coffee or not.
B. Bob is indifferent about purchasing the coffee.
C. Bob will get no surplus by purchasing the coffee.
D. All of these are true.
Answer: D
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Suppose that the cross elasticity of demand for Dell computers with respect to Hewlett Packard computers is 2.1
If Hewlett-Packard lowers its price by 5 percent, other things being equal, what will be the percentage change in the quantity of Dell computers demanded? A) 2.4 percent B) -10.5 percent C) 10.5 percent D) -42 percent
In the circular flow diagram, when Brian provides labor through the markets for factors of production to ABC Company, the flow of money he receives in exchange is called
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 If Smith and Jones devote all of their resources to producing computers, then the maximum number of computers they can produce in an hour is:
A. 16. B. 10. C. 6. D. 120.
Economic profit is found by subtracting accounting costs from total revenue.
Answer the following statement true (T) or false (F)