After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The marginal cost of your 10th cup of coffee purchased at the gas station is:
A. $0.50.
B. $5.00.
C. $10.00.
D. $5.50.
A. $0.50.
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When there is an excess quantity supplied
A) the market is in equilibrium. B) quantity demanded is greater than quantity supplied. C) quantity demanded is less than quantity supplied. D) prices will remain stable.
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
If there is no output for which product price is sufficient to cover variable costs
A) the firm should stay open in the short-run. B) the firm should shut down in the short run. C) the firm earns economic profits by staying open. D) the firm should increase production.
Which of the following mergers would most likely be challenged by the Federal Trade Commission?
A. one oil refinery in the U.S. and another oil refinery in Canada B. two restaurants in a large metro area C. two largest wireless service providers in the U.S. wireless communication industry D. an automaker and an insurance company