The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. It also illustrates the marginal benefit. There is no external benefit
If the city of Seattle puts on 5 concerts per year, then the marginal benefit will A) exceed the marginal social cost.
B) equal the marginal private cost.
C) be less than the marginal social cost.
D) equal the marginal social cost.
E) None of the above answers is correct.
A
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Based on opportunity cost, where would one expect to have the most difficulty finding a teenager to baby-sit?
A) A high-income area with lots of teenagers B) A low-income area with lots of teenagers C) A middle-income area with lots of teenagers D) Any income area because teenagers no longer like babysitting
The trade deficit and federal budget deficit plagued which U.S. presidential administration with high inflation and low levels of production and employment?
(a) Franklin D. Roosevelt (1933–45) (b) Dwight D. Eisenhower (1953–61) (c) John F. Kennedy (1961–63) (d) Ronald W. Reagan (1981–89)
In the short run, a perfectly competitive firm will always shut down if, at all output levels above zero,
a. price is less than average total cost b. total revenue is less than total cost c. they cannot pay variable costs with total revenue d. variable cost is greater than fixed cost e. price is less than fixed cost
Commitment devices can be:
A. a way to use choice architecture to help you avoid temptation. B. formal policies or products. C. a way for people to voluntarily restrict their choices in order to make it easier to stick to plans. D. All of these statements are true.