The price of an airline ticket from Denver to Chicago costs $450. A bus ticket costs $150. Traveling by plane takes 2 hours compared with 32 hours by bus. Other things constant, Erica would gain by choosing air travel if, and only if, she values her time at more than
A) $5 per hour.
B) $300 per hour.
C) $10 per hour.
D) $9.38 per hour.
C) $10 per hour.
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In the figure above, the marginal utility of the third crate of tomatoes for the person with total utility curve C is
A) 13 units of utility. B) 16 units of utility. C) 32 units of utility. D) 45 units of utility.
Refer to Figure 9-3. What is the area of domestic producer surplus after the imposition of a quota?
A) B + C B) B + E + I + J + M C) B D) E + I + J + M
"Learning by doing" results in decreased average costs of production and is illustrated by a downward shift of the firm's long-run average cost curve
Indicate whether the statement is true or false
The legality of which of the following actions would be determined using the rule -of-reason?
A) an agreement with a competitor firm to adjust output levels B) an agreement with a competitor firm to not sell to a particular customer C) an agreement with a competitor firm not to bid on a contract D) an exclusive dealings contract with a customer