The marginal cost of a vacation in the south of France is $4,500 . The marginal benefit to Madeline of a vacation in the south of France is $4,800.
a. Madeline will lose $300 if she vacations in the south of France
b. Madeline will experience a net gain of $300 if she vacations in the south of France.
c. Madeline will be worse off if she vacations in the south of France.
d. Madeline will enjoy a net gain of $4,800 if she vacations in the south of France.
b
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If a firm produces a given amount of output using the least amount of inputs, it definitely achieves economic efficiency
Indicate whether the statement is true or false
An increase in the general price level is termed:
a. the Consumer Price Index. b. inflation. c. deflation. d. stagflation. e. nominal pricing.
Which of the following is most likely correct about economists?
a. Economists do not determine the answer to the problem first and then draw the graph to illustrate. b. Economists do not use the graph of the theory to determine the answer. c. Economists determine the answer to the problem first and then draw the graph to illustrate. d. Economists identify multiple potential answers and then graph each one to determine the correct answer.
When government spending is less than the tax revenues during a specific time period, this is known as a
A. government budget deficit. B. government budget surplus. C. balanced budget. D. public debt.