Bubba is a shrimp fisherman who used $2,000 from his personal savings account to buy a boat and equipment for his shrimp business. The savings account paid 2% interest. What is Bubba's annual opportunity cost of the financial capital that he invested in his business?
a. $20
b. $40
c. $200
d. $400
b
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Refer to the figure above. When the supply curve of flash drives is S1 and the demand curve for flash drives is D, what is the shortage in the market when the price is $5?
A) 50 units B) 40 units C) 10 units D) 0 units
Social surplus is maximized in a(n) ________
A) perfectly competitive market B) monopolistically competitive market C) monopoly market D) oligopoly market
Suppose a previously competitive labor market turns into a monopsony. The labor supply curve faced by the new monopsonist is
a. above the labor supply curve under perfect competition b. the market supply curve of labor c. below the labor supply curve under perfect competition d. changed because workers are now more willing to supply labor e. perfectly horizontal
Which of the following coordinates the choices of buyers and sellers, bringing quantity demanded and quantity supplied into balance?
a. government mandates b. the market price c. taxes and subsidies d. consumer demand