Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences
A. a producer surplus of $9 and Nathan experiences a consumer surplus of $3.
B. a producer surplus of $9 and Nathan experiences a producer surplus of $12.
C. a consumer surplus of $9 and Nathan experiences a producer surplus of $3.
D. a consumer surplus of $12 and Nathan experiences a producer surplus of $3.
Answer: C
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The mean of a data set is the:
A) product of all values divided by the number of values. B) sum of all different values multiplied by the number of values. C) difference between the highest value and the lowest value. D) sum of all different values divided by the number of values.
A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38. At this output, average total cost is $15. What is the total profit earned?
A) $225 B) $285 C) $345 D) $570 E) $19
For the Cobb-Douglas utility function with two goods, the sum of the own price elasticities of demand must be:
a. 0. b. -1. c. -2. d. any number between 0 and -4.
If new manufacturers enter the computer industry, then, holding all other things constant,
a. each "old" manufacturer must sell fewer computers than before. b. some "old" manufacturers must exit the industry. c. the equilibrium price of computers must rise. d. the equilibrium quantity demanded of computers must rise.