If Big Box Store has customers with identical demands, if it practices two-part pricing, the profit-maximizing user fee is ________ the marginal cost of Big Box Store's product.
A) less than
B) greater than
C) exactly double
D) equal to
D) equal to
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What will be an ideal response?
The magnitude of the slope of an indifference curve is:
A) called the marginal rate of substitution. B) equal to the ratio of the total utility of the goods. C) always equal to the ratio of the prices of the goods. D) all of the above E) A and C only
In a perfectly competitive market in which all firms are maximizing their economic profits, the demand and supply curves intersect at a price of $8. From this we know that each
A) firm's average total cost of producing the good is $8. B) firm's average variable cost of producing the good is $8. C) firm's marginal cost of producing the good is $8. D) firm is earning positive economic profits at a price of $8 or more.
An expenditure schedule that lies below the full employment level of GDP will cause
A. rising prices. B. increasing output. C. falling inventories. D. falling prices.