Sam wins a Mega Millions jackpot worth $3 million. Which of the following is most likely true of Sam's consumption function?
a. His consumption function will be flatter
b. His consumption function will be steeper.
c. His consumption function will shift upward.
d. His consumption function will shift downward.
c
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In the figure above, consumer surplus at the price that maximizes the profit for an unregulated, single-price monopolist is the area of
A) rectangle 0heb. B) triangle abe. C) triangle eig. D) rectangle 0hgd.
The five countries with the highest carbon dioxide emissions include all of the following except:
a. Qatar b. Australia c. Canada d. Kenya
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium price lower than the short run price c. New firms entering the market d. All of the above
For the past three years, you have earned economic profits of $5,00 . per year by being the only vendor selling bottled tap water at your town's Fourth of July celebration. When you go to city hall to apply for a vending permit for this year's
celebration, the city clerk mentions that fifty new firms have received permits to sell tap water this year. a . What can you do to protect your economic profit in the short run? b. What can you do to protect your economic profit in the long run?