Refer to the scenario above. Suppose you decide to buy a Toyota Corolla. You value the car for $10,000. You don't know it, but the car dealer values it for $8,500. Which of the following is likely to be true?
A) You will end up buying a high-quality car.
B) You will end up buying a bad-quality car.
C) You will end up earning a positive consumer surplus.
D) You will choose not to buy the car.
B
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Refer to Scenario 12.1. Suppose that a third friend, Ryan, joins Simon and Paula on their way home from school, and this reduces the probability of any particular individual from stepping forward to help the man being attacked from 70% to 60%
What is the probability of either Simon, Paula, Ryan, or any combination of the three trying to rescue the man? A) 21.6% B) 50.4% C) 72.0% D) 93.6%
Refer to Table 2-9. What is Serena's opportunity cost of making a necklace?
A) 1/2 of a bracelet B) 1/2 of a necklace C) 3/4 of a bracelet D) 2 necklaces
The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.
Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands. Her weekly total revenue equals $3,500 . Her weekly total cost of running the stand equals $3,500, consisting of $2,500 of variable costs and $1,000 of fixed costs. An economist would likely advise Darlene to: a. shut down as quickly as possible because the stand is generating losses
b. keep the stand open because it is generating a normal profit. c. keep the stand open for a while longer because she is covering all of her variable costs and some of her fixed costs. d. keep the stand open for a while longer because she is covering all of her fixed costs and some of her variable costs.