Hot dogs and hot dog buns are complementary goods. The cross price elasticity between hot dogs and hot dog buns:
a. is positive
b. is equal to zero.
c. is negative.
d. could be any of the above.
c
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McCullough has a monopoly on rental dwellings in the local community. The demand for rental dwellings is QD = 70,000 - 50P ? P = 1,400 - 0.02 QD. The resulting marginal revenue function is MR(Q) = 1,400 - 0.04 QD
McCullough's marginal cost of providing rental dwellings is MC(Q) = 0.01Q + 20. Suppose that to ease the burden on renters, the local community has instituted a price ceiling of $480. Does consumer surplus increase due to this price ceiling? Does social welfare increase as a result of the price ceiling?
Pareto improvements that require the use of side payments typically are easy to coordinate and tend to enhance economic efficiency
a. True b. False
In the above table, the average physical product of 2 workers and the marginal product of the 2nd worker is
A. 4; 1. B. 3.5; 4. C. 3.5; 3.5. D. 2; 2.
Refer to the above table. What is the marginal factor cost when the firm employs the second unit of labor?
A. $21 B. $38 C. $36 D. $19