Marginal benefits are downward sloping when
A. there are no total benefits.
B. the slope of the marginal benefits curve is negative.
C. total benefits are increasing at a decreasing rate.
D. marginal costs are upward sloping.
B. the slope of the marginal benefits curve is negative.
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Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. If the government places a $1.20 tariff on imported units of this good, by how much is consumer surplus reduced?
A. $14,450 B. $5,400 C. $12,000 D. $3,600
Economic rent is a payment for a factor of production that elicits an increase in the quantity supplied
a. True b. False Indicate whether the statement is true or false
Refer to the above payoff matrix (in years of sentence) for two people (Bo and Max) charged for robbery. Which of the following is the outcome of the dominant strategy without cooperation?
A. Bo confesses while Max does not confess. B. Both Bo and Max do not confess. C. Bo does not confess while Max confesses. D. Both Bo and Max confess.
Producer surplus equals
A) total revenue minus total variable cost. B) total revenue minus the sum of all marginal cost. C) profit plus fixed cost. D) All of the above.