At $30 each, Jack will buy 1 Blu-ray and at $25, he will purchase 2 . If the price is $25, Jack's consumer surplus is:
a. $5
b. $10.
c. $15.
d. $20.
a
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In the short run with predetermined prices, when output is less than aggregate expenditure, firms will:
A. reduce production. B. decrease aggregate expenditure. C. increase aggregate expenditure. D. increase production.
Figure 9.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be plums (high quality)?
A. 10/25 B. 10/35 C. 25/35 D. None of the cameras sold will be plums.
Average fixed costs will
A) rise as output rises. B) fall then rise as output rises. C) rise then fall as output rises. D) fall as output rises.
Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.
Figure 1.5Refer to Figure 1.5. As firms produce additional units, average costs declines by a smaller and smaller amount. If output is graphed on the horizontal axis and average costs are graphed on the vertical axis, the relationship between average costs and output would be like which of the following Panels?
A. A B. B C. C D. D