Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is
What will be an ideal response?
$1
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What is the output level predicted by the Cournot model? Discuss this in terms of the different market models that have been surveyed so far
What will be an ideal response?
Refer to Figure 17-6. Under Scheme I
A) workers signal their productivity to the firm by consistently selling above 30 vacuum cleaners. B) the incentive to increase productivity only occurs for sales of fewer than 20 vacuum cleaners or more than 30 vacuum cleaners. C) workers compete with each other to see who can sell more than 20 vacuum cleaners in the shortest possible time. D) workers have no incentive to sell more than 30 vacuum cleaners.
Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:
A. longer life expectancies. B. higher rates of infant mortality. C. higher material standards of living. D. higher rates of literacy.
According to the Hotelling Rule, the price of an exhaustible natural resource will
a) be very volatile b) rise at the rate of interest c) be too low and result in to being exploited too quickly d) rise to ensure that the resource never runs out. e) Always be at the backstop price where rival sources are economic