Each member of OPEC can increase its income by selling more oil than its output quota because
A) the demand for oil is perfectly elastic.
B) by selling more at OPEC's cartel price, a member will automatically earn more income.
C) each member's demand is more elastic than the total demand for oil.
D) the demand for oil is inelastic so total revenue increases.
C
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Suppose that you could either prepare your own tax return in 15 hours or hire a tax specialist to prepare it for you in 2 hours. You value your time at $11 an hour; the tax specialist will charge you $55 an hour. The opportunity cost of preparing your own tax return is
A. $55. B. $165. C. $110. D. $40.
Betty goes out to enjoy a bouffe with her friend instead of practicing calculus problems for her maths examination that is due the following day. This implies that the opportunity cost of the bouffe to Betty is zero
a. True b. False Indicate whether the statement is true or false
In the long-run equilibrium in perfect competition, consumer surplus is
A) positive. B) negative. C) zero. D) less than producer surplus.
Consider the following game. You roll a six-sided die and each time you roll a 1, you get $50. For all other outcomes you pay $10. Since the expected value of this game is $0, the game is called a(n)
A. even game. B. zero sum game. C. fair bet. D. gamble.