The Wax Works sells 500 candles at a price of $10 per candle. The Wax Works? total economic costs for producing 500 candles are $2,000. The Wax Works? economic profit is
A. $2,000.
B. $3,000.
C. $5,000.
D. indeterminate from this information.
Answer: B
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In game theory, we usually assume that all players
A) act rationally. B) use the information available to them to decide on a best strategy. C) know about the payoffs of the other players. D) All of the above.
The concept of limited and bundled choice, as used in public choice theory, refers to the fact that:
A. Politicians may not be objective in evaluating economic policy programs B. Because of the importance of television and other modern communication techniques, the best and brightest candidates may not be selected by voters C. In an election, voters must select a candidate who has various preferences in a wide array of issues D. The most economically efficient public policy programs may not be selected because political leaders do not know enough about economics
It costs a computer manufacturer $1,000 to produce a personal computer. This manufacturer sells these computers abroad for $600. This is an example of
A. a negative tariff. B. dumping. C. export subsidy. D. a trade-related economy of scale.
Which of the following decreases the demand for an inferior good?
A) an increase in income B) a decrease in the price of a complement C) a decrease in income D) an increase in the price of a substitute