Suppose the market price for a cup of coffee is $1.25. If Coffee Express's marginal cost of making that cup of coffee is $0.75, its producer surplus from that cup of coffee is:
A. $0.50.
B. $0.75.
C. $1.25.
D. $1.50.
Answer: A
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Refer to Exhibit 6-3. Prices changed by ___________ percent between year 1 and year 2.
a. -1.6 b. -1.7 c. 1.6 d. -2.3 e. 2.3
Technology is defined as
A) the maximum output which can be attained from a stock of physical capital. B) society’s pool of applied knowledge concerning the production of goods and services. C) output beyond the production possibilities boundary. D) the utilization of the most advanced machinery.
If the price of good X increases, what will happen to the budget line?
A. It will become flatter. B. It will have a parallel shift outward. C. It will have a parallel shift inward. D. It will become steeper.
Monopolists do not have supply curves that are independent of market demand.
Answer the following statement true (T) or false (F)