Bryce saw a motorcycle for sale online. He had been wanting that model of motorcycle and was willing to pay $5,000. The one he saw online was listed for $3,500, so he immediately bought it. In this case, how much was the consumer surplus?
a. $1,500
b. $3,500
c. $5,000
d. $8,500
a. $1,500
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Game theory is distinctive in that its elements are
A) costs, prices, and profits. B) revenues, elasticity, and profits. C) rules, strategies, payoffs, and outcomes. D) patents, copyrights, and barriers to entry.
If MPC = 0.9, equilibrium income is $1,000 . and full-employment income is $2,000 . then how much government spending is needed to bring about full employment?
a. +1,000 b. –100 c. +900 d. +100 e. –0.9
Private solutions may not be possible due to the costs of negotiating and enforcing these solutions. Such costs are called
a. transaction costs. b. corrective costs. c. input costs. d. private costs.
Suppose a monopoly concrete contractor builds 20 driveways per month for $10,000 each. In order to increase sales to 21 driveways, the contractor must lower the price of driveways to $9,500. The marginal revenue of the 21st driveway is
A. $500. B. -$500. C. $9,500. D. $199,500.