Maria wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $2.50 per gallon, the car wash costs $2, but if she buys 10 gallons of gasoline, the car wash is free. For Maria, the marginal cost of the tenth gallon of gasoline is
a. zero.
b. 50 cents.
c. $2.00.
d. $2.50.
b. 50 cents.
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Consider a two-person, two-strategy game in which only pure strategies are played. Such a game must have at least one
a. Nash equilibrium. b. player with a dominant strategy. c. Pareto-optimal outcome. d. outcome that is both a Nash equilibrium and Pareto optimal.
The public goods problem refers to the tendency for private individuals to provide pure public goods in less-than-socially-ideal amounts because of free riding
Indicate whether the statement is true or false
Bonds without a maturity date are called
A) zero-coupon bonds. B) preferred bonds. C) common bonds. D) consols.
An increase in the supply of labor has the effect of decreasing the
a. wage. b. marginal product of labor. c. value of the marginal product of labor. d. All of the above are correct.