According to the Cost-Benefit Principle, you should go see the latest Star Wars movie with your friends this weekend if:
A. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.
B. you can afford to go to the movies.
C. the average benefit you get from going to the movies is greater than the average cost of a ticket.
D. you really like Star Wars.
Ans: A. the extra benefits of seeing the movie are greater than the extra costs of seeing the movie.
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The above figure shows Bobby's indifference map for juice and snacks. Also shown are three budget lines resulting from different prices for snacks. As the price of snacks rises, Bobby's utility
A) stays the same. B) increases. C) decreases. D) might change, but there is not enough information to determine.
Refer to the table below. What is Crunchy Fruits total marginal cost to produce 9,000 units?
Crunchy Fruits makes dried fruit snacks. Crunchy Fruits has a multi-plant firm with two production facilities. The table above summarizes the marginal cost of production at the individual plants and the corresponding quantity produced at the individual plants.
A) $2.25
B) $0.75
C) $1.25
D) $0.50
(Advanced analysis) Answer the question on the basis of the following information: The equations for the demand and supply curves for a particular product are P = 10 - .4Q and P = 2 + .4Q, where P is price and Q is quantity expressed in units of 100
After an excise tax is imposed on the product, the supply equation is P = 3 + .4Q. Refer to the given information. The efficiency loss of this tax is: A. $125.00. B. $62.50. C. $87.50. D. $1.00.
If Microsoft is earning a rate of return greater than the return necessary for the business to continue operations in the long run, then
A. the normal rate of return is zero. B. total costs exceed total revenue. C. total costs exceed a normal rate of return. D. the firm is earning an economic profit.