DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service. For a total price of $90, DeShawn will also detail the car's engine, a
service that adds an additional $20 to the total cost of the package. What is the marginal cost of adding the engine detailing to the basic detailing package?
A) $20
B) $30
C) $60
D) $60 plus the value of his time
Answer: A
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Which of the following statements best expresses why economic efficiency should be society's first goal?
A. Efficiency maximizes total economic surplus and thereby allows other goals to be more easily achieved. B. Since the consensus on what is a fair distribution of goods is impossible, efficiency is the next best goal. C. People are not really concerned about the problems of the poor, so government must address them instead. D. Efficiency gives the poor an incentive to improve their economic status.
The law of diminishing marginal utility states that marginal utility must diminish after the first unit of consumption of every good or service
a. True b. False Indicate whether the statement is true or false
When operating at the profit-maximizing/loss-minimizing level of output, total revenue minus total cost is a little under
A. $200.
B. $100.
C. $45.
D. -$45.
Fractional reserve banking can be thought of as a bank
A. holding deposits equal to its net worth. B. withholding a portion of its total deposits that are not loaned out. C. loaning out all of its reserves. D. paying a fraction of its profit to depositors.