Which of the following activities, if any, represents an external cost?
a. The reduction in the incidence of chicken pox when children are inoculated against the disease.
b. The damage to a person's health from secondhand smoke
c. The increase in local property values when the city creates a neighborhood park.
d. The price you pay for the prime rib that you consume at a local restaurant.
b
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If a country's working-age population increases and its wealth increases, then the labor supply curve
A) shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population. B) shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population. C) shifts to the left. D) shifts to the right.
Refer to the table below. If the cost per unit of advertising is constant at $900, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the dairy industry is made of up only by the three firms above; Cow Haven, Free Cows, and Happy Cows.
A) 3 B) 5 C) 2 D) 4
Why would someone buying a meal deal at a fast food restaurant be part of the product market?
a. Neither party involved is a firm. b. Neither party involved represents a household. c. A household is trading a product to another household. d. A household is buying a product from a firm.
Elmo's gas station in El Paso only sells gasoline if customers also purchase its car wash service
A) This is called a tie-in sale and is in violation of antitrust laws. B) This is not in violation of antitrust laws, as cars need both gasoline and car wash. C) This is not in violation of antitrust laws, as consumers get the gasoline below market prices. D) This is in violation of the Robinson-Patman Act.