What is the opportunity cost of going from point A to point B?
10 cars
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When compared to firms in perfect competition, monopolists tend to charge __________ prices and offer __________ quantities of output
a. lower; lower b. higher; lower c. lower; higher d. higher; higher e. higher; the same
A student buys only two goods pizza and books. The price of pizza is $5 and the price of books is $10. At the student's present level of consumption, her marginal utility of pizza is 4 and her marginal utility of books is 2. Currently, the student is spending all her income.A. Is this student currently in consumer equilibrium (maximizing utility)? Explain using a graph.B. What would this student have to do in order to increase her utility? Use the diagram from part (a) to explain your answer.
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. Market equilibrium occurs where supply equals demand. 2. A shortage occurs when the market price is lower than the equilibrium price. 3. A shortage is defined as the situation that exists when the quantity of a good supplied is greater than the quantity demanded.
Richard Bland quit his job as an accounting professor to start his own restaurant. He gave up a salary of $50,000 per year and withdrew $100,000 in bank CDs earning 5 percent to buy a building and equipment. In the restaurant’s first year it had direct expenses of $75,000 and revenues of $150,000. The restaurant’s economic profit was
A. $15,000. B. $20,000. C. $75,000. D. not possible to determine from the information given.