Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that:
A. cable TV service is an inferior good.
B. cable TV service is a normal good.
C. cable TV service and satellite TV service are complements.
D. cable TV service and satellite TV service are unrelated to one another.
B. cable TV service is a normal good.
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Marginal cost is the opportunity cost of producing
A) every unit possible. B) zero units. C) the first unit and only the first unit. D) one more unit of a good or service. E) None of the above answers is correct.
Which of the following is a factor of production?
A) an acre of forested land B) $25,000 in cash C) a U.S. Treasury bond D) 20 shares of Ford stock
The marginal cost to society of reducing pollution increases with the increased use of pollution abatement because
A. of the diminishing marginal utility of abatement. B. of the diminishing returns from abatement. C. of the high cost of abatement. D. of the reduced demand for abatement.
The fact that the fourth plate from the "All You Can Eat Country Buffet" generated more satisfaction than the fifth plate is an example of
A) increasing marginal utility. B) diminishing marginal utility. C) diminishing total utility. D) the "paradox of value."