How much would the monopoly in the figure below spend to prevent its price being regulated to marginal (or average) cost? 
A. $4
B. $16
C. $0
D. $8
Answer: B
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When a firm produces 50,000 units of output, its total cost equals $6.5 million. When it increases its production to 70,000 units of output, its total cost increases to $9.4 million. Within this range, the marginal cost of an additional unit of output is
A) $41.43. B) $134.29. C) $135. D) $145.
Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.80, then we know that
A) as Yd rises by $1, Co rises by $0.80. B) as Yd rises by $1, C rises by $0.80. C) Yd rises by $0.80. D) as C0 rises by $0.80, Yd rises by $1.
Jerry's Marginal Utility for consuming beer and pizza with $8.00 in income
In the above table, how many hotdogs and beers will Jerry consume if the price of one hotdog is $2.00 and the price of a beer is $2.00?
A. 1 hotdog and 3 beers B. 2 hotdogs and 3 beers C. 3 hotdogs and 1 beer D. 2 hotdogs and 2 beers
Suppose someone knew that the probability of incurring a $10,000 medical expense was 5%, and the odds of being healthy and incurring no expenses was 95%. If they used that information to compare the expected cost to them ($500) with the $500 premium it would cost to get full coverage and decided to buy the insurance, but only if the price went no higher then economists would say, they are
A. risk-neutral. B. risk-loving. C. risk-averse. D. irrational.