Marginal cost is the change in the:
A) total cost associated with producing one more unit of output.
B) average total cost associated with producing one more unit of output
C) average variable cost associated with producing one more unit of output.
D) opportunity cost associated with producing one more unit of output.
A
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Which of the following ideas describes the concept of "utilitarianism"? I. Utilitarianism gained popularity in the 1930s. II. Utilitarians believed that a society should use only competitive markets to allocate resources. III
Utilitarians claimed that taking money from rich people and giving it to poorer people would make the economy more fair. A) III only B) II only C) I and II D) I, II and III
Use the information in the following table, which summarizes the payoffs (i.e., profit) to two firms that must decide between an average-quality and a high quality product, to answer the questions that follow:
Firm 2 Average Quality High Quality Firm 1 Average Quality 600, 600 400, 1100 High Quality 1100, 400 900, 900 a. What is each player's dominant strategy? Explain your reasoning. b. Referring to the table above, is this an example of a prisoner's dilemma game? Why or why not? c. Is there a Nash equilibrium? If so, what is it?
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A) overexpansion; increase B) underexpansion; increase C) underexpansion; decrease D) overexpansion; decrease
Giving people income through unemployment insurance:
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