Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. What is the most Fun Cable Company would bid for the franchise?
A. $0
B. $62,500
C. $75,000
D. $112,500
Answer: B
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Refer to the Article Summary. One explanation for the increase in product sales because of celebrity endorsements is that people seem to receive ________ from goods they believe are popular
A) more utility B) increased path dependency C) diminishing utility D) greater network externalities
Most of the money that we pay to foreigners to finance our current accounts deficit
A. flows back to the U.S. in investment funds. B. stays abroad where it circulates as currency. C. ends up in the hands of drug dealers. D. is used by foreign governments as reserves.
Marginal revenue product is essentially the additional revenue generating from selling one additional unit of output
a. True b. False Indicate whether the statement is true or false
If the production function is Q = K.5L.5 and capital is fixed at 1 unit, then the average product of labor when L = 25 is:
A. 10. B. 1/5. C. 2/5. D. None of the answers are correct.