An example of a good that is nonrival in consumption is:
A. a campsite at Yellowstone National Park.
B. a ticket to an Omnimax movie at the Smithsonian.
C. the Lincoln Memorial in Washington, D.C.
D. All of these are nonrival in consumption.
Answer: C
You might also like to view...
Autonomous consumption is consumer spending which is based on income levels
Indicate whether the statement is true or false
Relative percentage changes are used in measuring price elasticity of demand, so that
A) it does not matter whether price increases or decreases when calculating the elasticity. B) it does not matter what units are used to measure prices or quantities. C) we always obtain a positive number. D) larger numbers indicate greater responsiveness.
Explain the significance of the price elasticity of demand along the kinked demand curve.
What will be an ideal response?
The Hound Dog Bus Company contemplates expanding its New Mexico operations by offering service from Raton to Milk-of-Magnesia. The total cost of the trip would be $400, of which $150 is fixed cost, which it has already paid. The firm expects to earn $275 in revenue from the trip. The Hound Dog Bus Co should
a. offer this service because it will earn a positive economic profit b. not offer this service because the marginal revenue is less than the marginal cost c. offer this service because the revenue exceeds fixed cost d. not offer this service because the total cost exceeds the total revenue e. offer this service because the added revenue exceeds the added cost of this service