Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $24 dollars
A) Curly will receive $26 of consumer surplus from buying one bottle.
B) Larry will receive $15 of consumer surplus since he will buy no bottles.
C) Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles.
D) Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each. Larry will buy no bottles.
A
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If, in a given economy, production is taking place at a point inside the production possibility frontier:
a. resource allocation is technically and allocatively efficient. b. resource allocation is technically efficient but allocatively inefficient. c. resource allocation is technically inefficient and allocatively efficient. d. resource allocation is technically and allocatively inefficient.
Discounting allows comparisons of
a. money values and physical values. b. interest payments on borrowed funds and interest payments on loaned funds. c. money values received at different times. d. the quantities of outputs produced by different types of capital goods.
________: the cost of all the factors of production used by a firm
Fill in the blank(s) with the appropriate word(s).
The demand curve facing an oligopoly firm is kinked because
A. It is most likely that competitors will match price hikes as they practice price leadership. B. It is most likely that rivals will match price cuts but not price increases. C. Its competitors will match only price hikes. D. The demand curve that is most inelastic is the most probable situation facing the company.