What is the approximate cost to a professional basketball team of giving ten free tickets for a particular game to children in an orphanage?
A) Probably nothing if the game is not sold out.
B) The face price of the tickets
C) The value of the opportunities forgone by putting on the game, divided by the number of seats (times ten)
D) We cannot tell unless we know the value the orphans place on attending.
A
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Refer to the table above. If the rental price of machines is $100 per day, up to how many machines should the firm rent to maximize profits?
A) 4 B) 5 C) 6 D) 7
When we say that money is a stock variable, we mean that
A) the quantity of money is measured at a given point in time. B) we must attach a time period to the measure. C) it is sold in the equity market. D) money never loses purchasing power.
If you want to earn a high income you should figure out what others value because
A) you will be able to gain at the expense of others. B) others will be willing to pay attractive prices for things they value. C) you will not have to compete in the job market. D) you will then be able to charge higher prices than alternative suppliers.
The present value analysis of the death penalty
A. compares the present value of a human life with the present value of adjudication and execution costs. B. considers exclusively the probability of executing innocent people. C. compares the present value of adjudication and execution costs with the present value of the cost of holding them in prison for life. D. compares the present value of a human life with the present value of the cost of lifelong incarceration.