A Jackson Pollock painting can cost $1.2 million, whereas a poster reproduction of the same painting costs only about $15. The reason is that:
A. the total utility of Jackson Pollock paintings is greater than the total utility of Jackson Pollock posters.
B. the opportunity cost of Jackson Pollock paintings is greater than the opportunity cost of Jackson Pollock posters.
C. Jackson Pollock paintings have more substitutes than Jackson Pollock posters.
D. the marginal utility of Jackson Pollock paintings is greater than the marginal utility of Jackson Pollock posters.
Answer: D
You might also like to view...
Tariffs are ________
A) taxes levied on goods imported into the United States B) levied by state and local governments C) the primary source of federal revenues D) taxes on goods exported from the United States
If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss solely due to the tax is
A) $88. B) $152. C) $361. D) $441.
Given that the firm only chooses to sell the high-end professional series, how should it price its product?
a. Price low, sell to both users b. Price high, sell only to the professional chefs c. Price low, sell only to the professional chefs d. Price high, sell only to the home users
Under free trade, a large country produces one million leather bags per year and imports another two million bags per year at the world price of $60 per bag. Assume the country imposes a specific tariff of $5 per bag. As a result, the per-unit price of leather bags decreases to $58 in the international market and the import of leather bags drops to 1.6 million. The domestic production, on the other hand, increases to 1.1 million. Calculate the tariff revenue collected by the domestic government.
A. $8 million B. $10 million C. $4 million D. $13.5 million