While waiting in line to buy a cheeseburger for $2 and a drink for 75 cents, Aaron notices that the restaurant has a value meal containing a cheeseburger, drink, and French fries for $3. For Aaron, the marginal cost of purchasing the French fries:
A. would be zero.
B. would be 25 cents.
C. would be 50 cents.
D. cannot be determined because the information about the price of the French fries is not provided.
Answer: B
You might also like to view...
Suppose Michigan’s NOX abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MACE = 1.8AEand MACN = 1.2AN. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be
a. AE = 7; AN = 7 c. AE = 5.6; AN = 8.4 b. AE = 4.8; AN = 7.2 d. none of the above
If labor productivity rises at the same time that there is a beneficial supply shock, what is the effect on short-run aggregate supply (SRAS)?
A) SRAS rises. B) SRAS falls. C) SRAS remains constant. D) SRAS may rise, fall, or remain constant.
An example of an industrial policy would be all except:
A. interest rate restrictions. B. trade barriers. C. tax breaks. D. subsidies.
________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production
A) Competition B) Voluntary exchange C) Equity D) A centrally planned economy