At a price of $5, 24 units of the good would be sold; at a price of $7, 25 units of output would be sold. The marginal revenue of the 25th unit of output is:
A. $14.
B. $55.
C. $6.
D. $175.
Answer: B
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a. all games have one. b. all games have no more than one. c. all games have a rich set to choose from. d. it is a Pareto optimum.
In a principal-agent problem, if the contract implies that the more risk-averse agent will bear less risk, we can say that this contract exhibits
A) efficiency in risk-bearing. B) risk sharing is not optimal because the less risk-averse (or risk-neutral) agent should bear none of the risk. C) risk sharing is not optimal because all risk should be transferred to the most risk-averse agent. D) risk sharing is not optimal because risk-neutral agents should face no risk.
When the price level rises less than expected, a firm with a sticky price will sell its output at a price that is
a) more than the firm desires and increase its production. b) more than the firm desires and decrease its production. c) less than the firm desires and increase its production. d) less than the firm desires and decrease its production.
Which of the following have a positive relationship with household saving?
I. the real interest rate II. disposable income III. expected future income A) I and II B) II only C) II and III D) I, II and III