The figure above provides information about Light-U-Up Utilities, which is a natural monopoly that provides electricity
If Light-U-Up is regulated and must follow an average cost pricing rule, it will produce ________ and sell at a price of ________. A) 200 kwh; 30¢ per kwh
B) 200 kwh; 25¢ per kwh
C) 300 kwh; 20¢ per kwh
D) 400 kwh; 15¢ per kwh
C
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Figure 36-5
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Which of the graphs in Figure 36-5 are consistent with a depreciation of the U.S. dollar and an increase in net exports caused by a decrease in U.S. interest rates?
A. 1 B. 2 C. 3 D. 4
When people are in financial difficulty an advisor will usually recommend establishing a budget for spending. One reason is that a budget will act to discipline behavior if people psychologically are subject to
A. mental accounts. B. bounded rationality. C. segregated gains. D. the halo effect.
Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00.Number ofworkersCoffee(cups/hour)00125245360470575 The marginal product of the third worker is ________ than the marginal product of the second worker, implying that ________.
A. greater; diminishing returns are absent B. neither greater nor less; the third worker will be hired C. less; the third worker will never be hired D. less; diminishing returns are present
In behavioral economics, the endowment effect refers to
A) most people believe that most wealthy people inherit their wealth. B) many people would be indifferent between being endowed with money or knowledge. C) many people place a higher value on what they own than when they consider purchasing. D) most people respond to tax incentives to provide an endowment for their children.