If price equals 0, then consumer surplus
a. is 0
b. is maximized
c. is price times quantity
d. is equal to marginal utility
e. cannot be determined
B
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The supply curve for labor in a purely competitive market slopes upward because
A. the wage rate paid to workers falls as more are hired. B. marginal resource cost rises as productivity increases. C. the marginal product of labor falls as output increases. D. higher wages must be paid to bid workers away from other opportunities.
Explain how games with more than three players are represented graphically
What will be an ideal response?
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a corporation. What is one advantage to Jeremy of setting up his business as a corporation?
A) By setting up the business as a corporation, Jeremy would have both ownership and control over the business. B) By setting up the business as a corporation, Jeremy would not face double taxation. C) By setting up the business as a corporation, Jeremy would have the ability to share risk with shareholders. D) All of the above would be advantages of setting up his business as a corporation.
Which of the following would be considered a negative real supply shock?
A) a relaxation of government environmental regulations B) a permanent increase in the price of energy C) a decrease in the money supply D) a decrease in aggregate demand