The marginal benefit to you of drinking one more bottled iced tea is $1.50 . The price of a bottle of iced tea is $1.25.
a. If you purchase iced tea you will suffer a net loss of 25 cents per bottle
b. If you purchase a bottle of iced tea, the net gain to you from doing so is 25 cents.
c. You will not purchase iced tea if you are acting rationally.
d. If you are acting rationally, you will purchase iced tea until the marginal benefit falls to 25 cents.
b
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A firm's total fixed cost equals $2,500 . The firm's average fixed cost at 1, 5, and 10 units of output, respectively, will be: a. $2,500, $2,500, and $2,500
b. $2,500, $500, and $250. c. $2,500, $12,500, and $25,000. d. $2,500, $1,250, and $250.
A rightward shift of a supply curve is called a(n)
a. increase in supply. b. decrease in supply. c. decrease in quantity supplied. d. increase in quantity supplied.
A risk-neutral individual will:
A. accept only better-than-fair gambles. B. accept only gambles with an expected value of zero. C. accept only gambles with an expected value of zero or greater. D. see risk as neither good nor bad.
Each firm in a perfectly competitive industry is
A) producing a unique product. B) relatively large. C) a price taker. D) a price maker.