Stanley receives the following marginal utilities from the first four car washes that he buys each year, respectively: 20, 15, 10, and 5 . If each car wash sells for $10, then the marginal utility per dollar spent on the third car wash is
a. 10
b. 4.5
c. 1
d. 45
e. 5
C
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Moral hazard in a transaction hurts
a. The seller only b. The buyer only c. Both parties d. None of the parties
When estimating a short-run average variable cost function,
A. the intercept must be forced to equal zero. B. the cost data must be inflation-adjusted. C. at least one input must have been constant during the period in which the data were collected. D. both b and c E. all of the above
Using Figure 1.4 and starting at PP1, an increase in the capacity to produce can be represented by a movement from point
A. A to point B. B. D to point E. C. C to point E. D. A to point C.
Refer to the information provided in Table 6.1 below to answer the question(s) that follow. Table 6.1Number of Hamburgers per DayTotal UtilityMarginal Utility130?252?367?476?5?4Number ofSodas per DayTotal UtilityMarginal Utility120?235?347?457?5?7Refer to Table 6.1. The marginal utility of the third hamburger per day is
A. 5. B. 15. C. 22. D. 67.