Tom tunes pianos in his spare time for extra income. Buyers of his service are willing to pay $155 per tuning. One particular week, Tom is willing to tune the first piano for $120, the second piano for $125, the third piano for $140, and the fourth piano for $160 . Assume Tom is rational in deciding how many pianos to tune. His producer surplus is
a. $95.
b. $80.
c. $75.
d. $60.
b
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The law of increasing costs states that the opportunity cost of producing a good increases as more of the good is produced
Indicate whether the statement is true or false
If there were a 10% reserve requirement, how much would the deposit multiplier be?
What will be an ideal response?
There is a high correlation between the number of automobiles on the road and the amount of carbon emissions in the atmosphere. This statement is best described as
A. an implication of an efficient market. B. a normative statement. C. a marginal statement. D. a positive statement.
A firm's opportunity costs ________
A) equal the costs of resources it buys from others in the market B) include the cost of using resources owned by the firm C) increase when economies of scope exist D) do not include any opportunity costs for resources the owner suppliers