Isabella wishes to buy gasoline and have her car washed. She finds that if she buys 9 gallons of gasoline at $1.50 per gallon, the car wash costs $1, but if she buys 10 gallons of gasoline, the car wash is free. For Isabella, the marginal cost of the tenth gallon of gasoline is
a. zero.
b. 50 cents.
c. $1.
d. $1.50.
B
You might also like to view...
If the opportunity cost of producing cheese is higher in Greece than in Italy,
a. Greece should specialize in producing cheese b. Italy should specialize in producing cheese c. both Greece and Italy should produce cheese but Italy should still export cheese to Greece d. Greece gives up fewer goods to produce cheese than Italy does e. both Greece and Italy should produce cheese but Greece should still export cheese to Italy
The price of coal fell and the quantity sold also fell. Everything else being equal, it is consistent that
a. the price of oil fell. b. coal miners received large wage increases. c. more efficient mining equipment was installed. d. consumer incomes rose. e. the supply of coal fell.
Refer to the graph shown. If the monopoly firm maximizes profit, there will be a welfare loss equal to:
A. $5.00. B. $2.50. C. $10.00. D. $7.50.
Which of the following is true under conditions of perfect competition?
A. The market demand curve is perfectly elastic. B. No single firm can influence the market price. C. There are differentiated products. D. Each individual firm has the ability to set its own price.