A couple that is currently renting but is contemplating a move to another city in the near future should
What will be an ideal response?
continue renting because real estate is illiquid and costly to buy and sell.
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Which of the following are examples of cooperative games?
A) The bargaining between a buyer and seller over the price of a car B) Independent action by two firms in a market regarding advertising strategies C) Independent pricing strategies by two firms in a market D) Independent pricing strategies by many firms in a market E) Team games (such as baseball or basketball)
You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?
A. $2 B. $8 C. $22 D. $57
Refer to the above figure. At a price of $10, excess quantity supplied equals
A. 15. B. 12. C. 0. D. infinity.
The main decision for a profit-maximizing perfectly competitive firm is not what ________ but what ________.
A. price to charge; level of output to produce B. level of output to produce; price to charge C. level of output to produce; total revenue to achieve D. price to charge; total cost to achieve