The figure above shows the market for milk. If 100 gallons of milk a day are available, the ________ price that consumers are willing to pay for the last gallon is ________
A) maximum; $2.50
B) minimum; $3.00
C) maximum; $4.00
D) minimum; $4.00
C
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Fiat money refers to a monetary system in which gold backs up paper money
Indicate whether the statement is true or false
Neither the demand for gasoline nor the supply of gasoline is perfectly elastic or inelastic. If the federal government eliminated the 18.4 cents per gallon gasoline tax, the price paid by buyers would
A) decrease by less than 18.4 cents. B) decrease by 18.4 cents. C) decrease by more than 18.4 cents. D) stay the same. E) increase by 18.4 cents.
You are given the following risky cash flows and certainty equivalent factors for a four-year project:
Certainty Period Cash Flow Equivalent Factor 1 $2,500 .95 2 3,000 .92 3 4,000 .88 4 3,000 .84 The initial investment for this project is $8,000, and the risk-free interest rate is 6%. Calculate the net present value of the project.
When marginal utility is positive and increasing, then
a. total utility must be negative. b. total utility must be increasing at an increasing rate. c. total utility must be increasing at a decreasing rate. d. total utility is decreasing. e. total utility is at its maximum point.