Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. Profit-maximizing two-part pricing yields total revenue of
A) $24.
B) $40.
C) $16.
D) $32.
A
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Which of the following statements is correct?
A. The demand for capital is derived from the demands for outputs. B. The demands for output are derived from the demand for capital. C. The demand for capital is derived from the demand for rent. D. The demand for rent is derived from the demand for capital.
Using the Coase theorem, why might a firm that currently pollutes a river no one owns pollute the river less if it owned the river?
What will be an ideal response?
If the government-imposed price of corn is greater than the market price,
a. the quantity of corn supplied will exceed the quantity of corn demanded. b. the quantity of corn supplied will be less than the quantity of corn demanded. c. the demand curve for corn will increase. d. the supply curve for corn will increase.
According to the Incentive Principle:
A. people tend to do more of something when its benefits are greater. B. people will always take the highest-paying job they are offered. C. benefits are more important than costs in making a decision. D. it is irrational to perform volunteer services.