If a city decides to lift restrictions of how many taxi cabs can operate, social welfare will increase
What will be an ideal response?
True. Even though turning producer surplus into consumer surplus doesn't increase total welfare, the elimination of the deadweight loss that resulted from the limit does.
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Investment is defined as the purchase of
A) financial assets and inventories only. B) new capital goods but not additions to inventories. C) any financial asset only. D) new capital goods and additions to inventories. E) additions to inventories only.
Sal likes to eat pizza. The ________ is the maximum amount that Sal is willing to pay for one more piece of pizza
A) efficient price B) efficient amount C) marginal benefit D) marginal cost
Which of the following is not a factor which would be relevant to country risk analysis?
A) political uncertainty B) external debt C) economic growth D) none of the above.
A monopolist sells cable subscriptions in a small town and finds that it can sell 100 subscriptions when the price is $15 a week and an additional 75 subscriptions when the price is $10 a week. The MC for the provision of the cable is $5 a week. There are no fixed costs. Look at the scenario A Small-Town Monopolist. If this monopolist chooses to sell subscriptions at one price, it will sell _____ units at a price of _____ and earn economic profits equal to _____.
A. 100; $15; $1,000 B. 175; $15; $1,000 C. 100; $10; $750 D. 75; $10; $500