It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1000 . The firm has experienced
a. Economies of Scale
b. Economies of Scope
c. Diseconomies of Scale
d. Diseconomies of Scope
b
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What will happen to the demand curve for tea workers if the price of tea increases, assuming all else equal?
A) There will be an upward movement along the demand curve for tea workers. B) There will be a leftward shift in the demand curve for tea workers. C) There will be a downward movement along the demand curve for tea workers. D) There will be a rightward shift in the demand curve for tea workers.
The aggregate demand curve shows total expenditures at different levels of national income
Indicate whether the statement is true or false
SouthState Chemical Co. produces pine oil cleaners in a process that produces emissions that discolor the paint on nearby houses, although the emissions have been declared nontoxic to humans. a. Is the price for the cleaner likely to be allocatively efficient? Use a graphic illustration in your answer. b. If your answer to (a) is no, what is an appropriate government policy to correct the problem?
What will be an ideal response?
Kayla and Kevin are friends who go together to a used textbook seller who has two copies of the biology book that they both need for their class this semester. The cost to the seller of acquiring the books was $25 each and no other students will need this book. Kayla states that she is willing to pay $40 for the book, while Kevin says he is willing to pay $80. Which of the following describes the most likely conclusion to this scenario?
A. The seller will sell the books to both Kayla and Kevin for $80 each because Kevin's higher value exceeds Kayla's willingness to pay. B. The seller will sell the books to both Kayla and Kevin for $40 each because if they tried to charge Kevin a higher price, Kayla would engage in arbitrage. C. The seller will sell one book to Kayla for $40 and one book to Kevin for $80 because this market meets all three requirements for price discrimination. D. The seller will sell the books to both Kayla and Kevin for $25 each because that is how much the seller paid for the books.