Wild Woman's Wild Wilderness Adventures sells 1,000 vacation packages each year. The average total cost of the packages is $450 and each package sells for $770 . Annual profit is
a. $230
b. $320
c. $2,300
d. $320,000
e. $3.2 million
D
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The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,
a. d and e. b. the supply curve of labor is relatively flat. c. offering a wage lower than the market wage means having no workers. d. the employer faces the market supply curve. e. the firm does not take the wage as given.
The similarity between markets for common resources and markets with externalities is that:
A. generally we get an oversupply at market. B. the price that competitive firms charge does not capture the true costs and benefits of consumption. C. the equilibrium quantity is too high in terms of society. D. government involvement is needed to reach an efficient outcome.
When the price of a good is above its equilibrium price, a:
A. surplus puts upward pressure on the price. B. surplus puts downward pressure on the price. C. shortage puts upward pressure on the price. D. shortage puts downward pressure on the price.
What is the "medium of exchange" function of money?
A. a common measurement of the relative value of different goods and services B. the ability of money to hold value over time C. the quality of money not to be hoarded because of its commodity value D. the function of money to be widely accepted I exchange for goods and services