If the average cost of transporting a passenger on the train from Chicago to St. Louis is $75, it would be irrational for the railroad to allow any passenger to ride for less than $75
a. True
b. False
Indicate whether the statement is true or false
False
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The market supply curve for music downloads is Q = 135(P-1 ) where Q is millions of downloads and P is the price in dollars per track
If the current price is $1.20 per download, what is the change in producer surplus if the price increases by $0.20 per track? A) $5.4 million B) $8.1 million C) $10.8 million D) $27 million
The Bureau of Labor Statistics periodically updates the base year in the CPI because
a. nominal GDP changes over time b. of changes in the importance of goods in the consumer basket c. real GDP changes over time d. the GDP deflator is periodically updated e. prices change over time
An increase in the capital stock shifts
a) short-run aggregate-supply curve to the left and long-run aggregate-supply curve to the right. b) short-run aggregate-supply curve to the right but does not shift long-run aggregate-supply curve. c) long-run aggregate-supply curve to the right but does not shift short-run aggregate-supply curve. d) both short-run and long-run aggregate-supply curve to the right.
Refer to the following table:
The optimal level of activity is:
A. 2 B. 3 C. 4 D. 5 E. There is no optimal level in this case because marginal benefit does not equal marginal cost at any activity level.