Refer to Scenario 13.1 below to answer the question(s) that follow. SCENARIO 13.1: The government of Catalina Island is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P = 55 - 0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR = 55 - 0.02Q. Universal Entertainment is interested in bidding for the right to provide cable service on Catalina Island. It has a constant average and marginal cost of $15 for providing cable service to each household.Refer to Scenario 13.1. If Universal Entertainment were to be awarded the exclusive right to provide cable
service on Catalina Island, how many households would it service?
A. 2,000
B. 2,750
C. 4,000
D. 5,500
Answer: A
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If Happy Avocados, a ready-made guacamole manufacturer, contracts with an outside supplier to produce avocados, this is an example of ________.
A) outsourcing B) forward integration C) divestiture D) backward integration
In a modern dynamic economy such as the United States, full employment generally means
a. cyclical unemployment is present. b. everyone (excluding teenagers) that would like to work is employed. c. approximately 95 percent of the labor force is employed. d. 100 percent of the labor force is either working or seeking work.
Which of the following statements is true?
A) Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie. B) Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink. C) Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth. D) a and c E) b and c
What alternative to restrictions on capital inflows do some economists recommend to minimize the possibility of increased lending booms and risk taking by domestic banks?
What will be an ideal response?