Ralph wants to buy some milk and a box of cereal. If Ralph buys 2 quarts of milk at $1 per quart, the box of cereal costs 75 cents. If he buys 3 quarts of milk at $1 per quart, the box of cereal is free. For Ralph, the marginal cost of the third quart of milk is:
a. zero. b. 25 cents.
c. 75 cents. d. $1.
b
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In reality, because few markets are perfectly competitive, some loss of economic efficiency occurs in the market for nearly every good or service
Indicate whether the statement is true or false
Which of the following is NOT true about the national income identity given by the equation:
A) If CA is positive, national saving finances the purchase of our goods by foreign users. B) If CA is negative, our investment exceeds our national savings. C) A negative CA may imply that foreigners have confidence in the U.S. economy. D) If CA is negative and large, a country risks foreigners owning a large piece of its assets. E) None of the above.
You are the manager of a spa you believe one of your suppliers is engaged in cartel activity. As the manager, you ________ an incentive to report the behavior because your spa can ________.
A) do not have; receive treble damages B) have; have to pay whistle -blower fees C) have; receive treble damages D) do not have; have to pay whistle-blower fees
Liquidity is:
A. sufficient liabilities to cover long-run assets. B. having assets that can be readily converted into cash. C. having liabilities that can be readily converted into cash. D. sufficient assets to cover long-run liabilities.