Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, what is the market quantity demanded at a price of $3?

If the pollution havens hypothesis is true, we should expect world pollution to decline as a result of international trade and globalization

Indicate whether the statement is true or false

The optimal bidding strategy for an oral auction is

a. To shade your bid below your true value and drop out well before it is reached b. To shade your bid below your true value and drop out just when the shaded amount is reached c. To drop out when the bidding exceeds your true value d. To size up your competition to determine how much to shade your bid

Claude's Copper Clappers sells clappers for $65 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $45, and average total cost is $67 . To maximize his profit or minimize his loss, Claude should

a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price

Define the following terms and explain their importance to the study of economics

a. public good b. externality c. irreversible decision d. moral hazard e. rent seeking