Suppose the marginal cost of dating Perry is $30 and the marginal benefit is worth $40 to you. Following economic reasoning, you should:
A. determine what your sunk costs are.
B. date Perry.
C. not date Perry.
D. determine what your total benefits and total costs are.
Answer: B
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When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays
A) constant average fixed costs. B) decreasing returns to scale. C) increasing returns to scale. D) constant returns to scale.
The division of productive activities among persons and regions so that no one individual or area is totally self-sufficient is known as
A) advantage-taking. B) comparative value. C) specialization. D) outsourcing.
In March 2015, many college students bet on the NCAA finals in dorm gambling pools. This is an example of
a. real vs. nominal GDP. b. the assumed value of household production. c. underground economic activity. d. the implicit value of leisure time. e. a "bad" versus a "good."
Collective goods tend to be underprovided by private markets because:
A. it's not socially optimal for the price of these goods to be greater than zero. B. of the free-rider problem. C. of inefficiencies in the income tax system. D. these types of goods are usually provided by the government instead.