In the above figure, if the single-price monopolist charges a price that maximizes its profits, consumer surplus is
A) area hacd.
B) area bac.
C) area jae.
D) area jbce.
B
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In regression analysis, the explanatory variables
A) are always price and income. B) are the variables whose variations are to be explained. C) are the factors that are thought to affect the dependent variable. D) are used to explain the random error term.
Which of the following prices could represent Sally's willingness to pay for a pair of shoes if she bought them for $45?
A. $15.00 B. $25.00 C. $44.99 D. $55.00
Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a public good, and the marginal cost of the 20th unit is $10, then the optimal quantity of the public good is:
A. 20 units B. less than 20 units. C. zero. D. greater than 20 units.
There would be no excess burden from a tax if demand were
A. perfectly elastic. B. unitarily elastic. C. upward sloping. D. perfectly inelastic.