Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the quantity of satellites provided by a competitive market is
A) 0.
B) 1.
C) 2.
D) 3.
A
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There is a strong link between changes in the money supply and inflation
A) in neither the short run nor the long run. B) in the short run, but not in the long run. C) in the long run, but not in the short run. D) in both the short run and the long run.
Assume a competitive price-searcher firm is earning an economic profit. The marginal revenue from selling an additional unit is $30 and the marginal cost of producing that additional unit is $23 . The firm should
a. change neither its price nor its output level b. reduce its price and increase its output level c. increase its price and reduce its output level d. reduce both its price and its output level e. increase both its price and its output level
According to the law of diminishing marginal utility, after some point:
A. the more we buy of something, the more it costs. B. people should spend all of their income on one good. C. the more we consume of something, the less each additional unit adds to our satisfaction. D. the more we consume of something, the smaller the total satisfaction received from that good.
Which of the following is included in measuring GDP?
A. the transfer of secondhand goods B. the value added at each stage of production of a final product C. the buying and selling of securities D. household services rendered by homemakers