Refer to the accompanying figure. The opportunity cost of making an additional salad:
A. decreases as the number of pizzas decreases.
B. remains constant regardless of how many salads are made.
C. decreases as the number of salads increases.
D. increases as the number of salads increases.
Answer: D
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In a market with information asymmetry, gains from trade occur if:
A) the value of the good to the seller is greater than its value to the buyer. B) the value of the good to the buyer is greater than its value to the seller. C) the variable cost of producing the good is zero. D) the opportunity cost of consuming the good is zero.
Which of the following is not true when the price of a good or service falls?
a. Buyers who were already buying the good or service are better off. b. Some new buyers, who are now willing to buy, enter the market. c. The total consumer surplus in the market increases. d. The total value of purchases before and after the price change is the same.
Refer to the graph shown.
The per-unit cost incurred by a monopolist that is X-inefficient but produces the profit-maximizing level of output is best illustrated by:
A. A. B. B. C. C. D. D.
If the interest rate is 5 percent, the present value of $200 received at the end of five years is:
A. $132.62. B. $176.41. C. $121.34. D. $156.71.