Pedro's utility of wealth is 6 units for $10,000 and 10 units for $20,000. A friend gave him a lottery ticket for his birthday. The ticket won, giving him either $10,000 with probability 0.5 or $20,000 with probability 0.5
Pedro's expected utility from the lottery ticket is A) between 6 and 8 units.
B) equal to 8 units.
C) between 8 and 10 units.
D) equal to 10 units.
B
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A clothing store can sell two shirts for $20 each or three shirts for $18 each. At a quantity of three shirts sold, marginal revenue is _____
a. $18 b. $14 c. $54 d. $20 e. $44
For a monopolistically competitive firm in long run equilibrium: a. marginal revenue equals marginal cost and price equals average cost
b. the economic profits it is earning will soon be competed away by entry. c. accounting profits are zero and price equals marginal cost. d. marginal revenue equals marginal cost and average total cost is minimized.
Sticky prices in oligopoly markets are
A. represented by the kinked demand curve model. B. typical of cartels. C. most common for highly differentiated products. D. a result of price discrimination.
Which of the following would be a private cost to a cigarette smoker?
A. Cost to the employer of the higher health insurance premiums due to the hiring of a smoker. B. Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking. C. Cost to the city of extra park cleanup due to the presence of cigarette butts. D. Price of the pack of cigarettes.