A local video store estimates its average customer's demand per year is Q = 7 ? 2P, and it knows the marginal cost of each rental is $0.5. What is the annual profit that the video store expects to make on an average customer if it engages in optimal two-part pricing?
A. $7
B. $9
C. $6
D. $8
Answer: B
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Using the above table, the marginal utility for the sixth glass of water is
A. 260 utils. B. 255 utils. C. -5 utils. D. 5 utils.
If you believe that velocity is constant and that the aggregate supply curve is horizontal, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of the
A. price level and real output. B. price level. C. price level and no change in real output. D. real output.
The more flexible prices are, the
A) greater demand shifts have to be to bring about a new equilibrium. B) larger the shifts in supply will be after a change in demand. C) greater the reliance by sellers to change the nominal price. D) more quickly a shock to the economy can be absorbed.
Suppose a shipping company required all applicants to lift fifty-pound boxes on and off a truck for an hour to test their strength and endurance and suppose that resulted in 50-out-of-100 black applicants being hired and 10-out-of-100 white applicants being hired. If this test measured the performance required on the job then this would be an example of
A. disparate treatment discrimination. B. adverse impact discrimination. C. statistical discrimination. D. rational discrimination.