Suppose you have four choices—go to a movie, read a book, watch television, or go to a concert. You choose to go to a movie. The opportunity cost of the movie is
A) the value of the book not read.
B) the value of the television program not watched.
C) the value of the concert that you didn't attend.
D) the value of the activity that you would have selected if you hadn't gone to the movie.
D
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Suppose the following information is known about a market: 1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market
Assuming a linear supply curve, use this information to derive the market supply curve.
When a monopolist is able to price-discriminate: a. its profits tend to increase and its consumer surplus tends to fall. b. both its profits and consumer surplus tend to increase
c. both its profits and consumer surplus tend to decrease. d. its profits tend to fall and its consumer surplus tends to increase.
Competitive price-taker markets are characterized by
a. firms that all produce the same product. b. a small number of firms in the market. c. firms that are large relative to the size of the market. d. widespread use of advertising as a competitive weapon.
Logrolling occurs when
A. voters are limited to voting on bundles of goods. B. congressional representatives trade votes. C. lumberjacks roll logs downhill to their trucks. D. voters are uninformed about issues and thus simply vote with a given party.