A lighthouse that serves a dangerous coastal area is built. The lighthouse cost $2 million to build and serves 100 ships a month. If the shipping in the area increases so that 300 ships pass by a month, the increase in additional costs of providing the light to these new ships is
A. $0.
B. $5,000.
C. $2 million.
D. $100,000.
Answer: A
You might also like to view...
National income is defined as
A) gross domestic product less the consumption of fixed capital. B) gross national product plus transfer payments. C) gross domestic product less retained earnings plus transfer payments. D) gross national product less retained earnings plus transfer payments.
John Maynard Keynes, author of The General Theory of Employment, Interest, and Money, argued that
a. classical economic theory was correct b. the government should follow a policy of laissez faire c. the critiques of classical economics were flawed d. the economy does not always perform well in the absence of government guidance e. instead of focusing on money, the government should control interest rates
If the market demand curve does not capture all of the benefits to society of buying an additional unit of good, then:
A. the allocation of resources will be socially optimal. B. the market equilibrium will not be efficient. C. the market equilibrium will be socially optimal. D. the market will not be in equilibrium.
Which of the following is true when an economy is producing efficiently?
A. The economy is producing on the production possibilities curve. B. The economy is getting the fewest goods and services from the available resources. C. Everyone in the economy is happy. D. The economy is producing outside the production possibilities curve.