Cruise liners offer last minute deals because
a. The marginal cost is higher than the marginal revenue since fixed costs are sunk
b. The marginal costs of an additional passenger are very low at that point and companies gain by lowering prices
c. The average cost of an additional passenger is very low at that point and companies gain by lowering prices
d. All of the above
b
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An example of a commitment device would be:
A. buying yourself an ice cream after going to the gym. B. putting a note on the cookie jar that you want to lose weight. C. a swear jar that you and your friends agree must be paid $5 each time someone swears. D. All of these are examples of commitment devices.
Which of the following is one source of disagreement between economists?
a. Some facts about the economy are unknown. b. Economists differ in their political persuasions. c. Economic theory may not always give an unambiguous answer to a question. d. Solving one problem may make another problem worse. e. All of the above are correct.
Democracy tends to best promote freedom when there is
What will be an ideal response?
According to the classical? model, if an excess quantity of labor is supplied at a particular wage? level, full employment will be maintained because.
A. the equilibrium wage rate will rise to stimulate spending. B. wages will fall rapidly to permit businesses to continue hiring everyone who wants to work. C. the government will establish special work programs. D. the government will step in and stimulate spending.