Tom carries on loud cellphone conversations in public places. He values such conversations at $1 per minute. Steve prefers piece and quiet. He would pay $2 per minute to avoid overhearing Tom's conversations. In this situation
a. Tom should quit using his cellphone because that would be a Pareto improvement
b. Tom should quit using his cellphone because that would be efficient
c. If Steve made a side payment of $3 to Tom, that would be a Pareto improvement
d. If Steve paid Tom 50 cents per minute to quit talking, that would be a Pareto improvement
e. If Steve paid Tom $1.50 per minute to quit talking, that would be a Pareto improvement
E
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Refer to the payoff matrix below. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) There is one Nash equilibrium in this game.
B) There are three Nash equilibria in this game.
C) There are no Nash equilibria in this game.
D) There are two Nash equilibria in this game.
An optimal purchase is one that maximizes total utility
a. True b. False Indicate whether the statement is true or false
Discuss the reserve requirements method of conducting monetary policy, including a description of this method, the types of adjustments banks are likely to be required to be made, and the effects on the economy that are likely to result
Economists normally assume that the goal of a firm is to (i) sell as much of its product as possible. (ii) set the price of the product as high as possible. (iii) maximize profit
a. (i) and (ii) only b. (ii) and (iii) only c. (iii) only d. (i), (ii), and (iii)