Table 16.2Consider the data in Table 16.2. If each firm is currently generating 100 gallons of wastewater per day, Firm B would be willing to pay up to ________ to Firm A to be able to generate 200 gallons of wastewater per day.
A. $10
B. $12
C. $28
D. $200
Answer: B
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Refer to Figure 10-1. When the price of hoagies increases from $5.00 to $5.75, quantity demanded decreases from Q1 to Q0. This change in quantity demanded is due to
A) the fact that marginal willingness to pay falls. B) the law of diminishing marginal utility. C) the income and substitution effects. D) the price and output effects.
If the percent change in nominal GDP is 6 percent and the percent change in real GDP is 2 percent, inflation is:
A. 4 percent. B. 2 percent. C. 0 percent. D. 6 percent.
Recall the Application about running a software programming business to answer the following question(s).The time and invested funds involved in starting a software (app) development business addresses the economic concept of:
A. the marginal principle. B. opportunity cost. C. the real-nominal principle. D. the principle of diminishing returns.
What would lead an economist to conclude that Theory A is superior to Theory B?
A) Theory A predicts real-world events better than does Theory B. B) The assumptions underlying Theory A are more realistic than are the assumptions underlying Theory B. C) Theory A explains how people think, whereas Theory B only explains what they do. D) Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interest and acts accordingly.