When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 units of output, its total cost increases to $9.4 million. Within this range, the marginal cost of an additional unit of output is

Jane is willing to pay $50 for a pair of shoes. The actual price of the shoes is $30. Her consumer surplus on this pair of shoes is

A) $20. B) $50. C) $30. D) $80.

Suppose Hillary was offered the following choice: Option 1 is to win $10 for sure and Option 2 is to win $20,000 with odds of 1 in 2,000 and otherwise to win nothing. If Hillary is risk loving she:

A. will choose Option 1. C. is indifferent between the two. D. will choose Option 1 or Option 2 with equal probability.

Market failure occurs when

a. all Pareto improvements are undertaken b. refusal to make a side payment reduces Pareto efficiency c. the economy operates above the production possibilities frontier d. markets are perfectly competitive e. some Pareto improvements are not made

Considering two countries X and Y, country X has an absolute advantage in the production of a good when it can produce the good using fewer resources than country Y

Indicate whether the statement is true or false