Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she decides to charge each customer according to his or her willingness to pay. What is the value of consumer surplus by her customers?
A) $39 B) $28 C) $11 D) $0
D
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A short-run equilibrium occurs
A) at the intersection of the short-run aggregate supply curve and the aggregate demand curve. B) at the real GDP associated with full employment. C) at the intersection of the short-run aggregate supply curve and the long-run aggregate supply curve. D) at the intersection of the long-run aggregate supply curve and the aggregate demand curve.
Fill in the blank: Since millions of people now use email as opposed to traditional "snail mail," the price elasticity of demand for the Post Office's first class letter service tends to ________
A) decrease B) increase C) increase in the short run but then decrease in the long run D) leave unchanged
Which factor of production earns the highest percentage of total U.S. in-come? Define that factor of production. What is the income earned by this factor of production called?
What will be an ideal response?
Bubba is a shrimp fisherman who catches 4,000 pounds of shrimp per year. He can sell the shrimp for $5 per pound. His average total cost of catching shrimp is $3 per pound. Bubba's annual total profit is
a. $8,000. b. $12,000. c. $20,000. d. $32,000.