Maria wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Maria, the marginal cost of the tenth gallon of gasoline is
A) $2.50.
B) zero.
C) $2.00.
D) 50 cents.
D) 50 cents.
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If the price of almonds changed as a result of a change in the supply of almonds, is the demand for almonds elastic or inelastic? Explain your an-swer
What will be an ideal response?
If the more-is-better principle holds, then indifference curves must:
A. be positively-sloped. B. be negatively-sloped. C. be thin. D. be concave.
Figure 10-4
Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S3, the firm is
a.
going to shut down.
b.
incurring losses.
c.
earning zero economic profits.
d.
earning economic profit greater than zero.
Say your girlfriend has received two free tickets to the Sunday movie matinee and she wants you to go with her. Nevertheless, the movie plays at the same time you were planning to watch the football game on the TV. As a rational person you should decide to go to the movie
A. only if it brings you more pleasure than the cost of the tickets. B. always, since the tickets were free. C. only if the pleasure you will gain from it outweighs the pleasure you would gain from watching the football game. D. only if you would gain some pleasure from it.