Leisure Land produces only sun screen and camel rides. The table shows the marginal benefit and marginal cost schedules for sun screen and camel rides. The allocatively efficient number of camel rides is ________
A) 1 ride per day because the marginal benefit exceeds the marginal cost by as much as possible
B) 2 rides per day
C) 4 rides per day
D) 6 rides per day because that is the maximum number of rides
C
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As the market price of a good falls, consumer surplus: a. falls
b. rises. c. does not change. d. can either fall, rise, or stay the same.
For many years, dairy farmers would milk their cows and bring the milk to market. After buyers and sellers negotiated all sales, the farmers dumped large quantities of milk into rivers. What does it tell us about that milk market? A free market would not have created an ______, so that in this case there must have been a _________
a. opportunity to dump milk; special permit b. excess supply; price floor c. excess demand; price floor d. excess supply; price ceiling e. excess demand; price ceiling
Growth promotion through capital deepening is constrained due to
A. slow population growth. B. the income effect. C. the principle of diminishing returns. D. the principle of opportunity cost.
Most of the income earned by professional athletes and major celebrities can be classified as _________.
Fill in the blank(s) with the appropriate word(s).