Refer to the accompanying figure. Moving from point B to point A, the opportunity cost of 25 more salads is:
A. 15 pizzas.
B. 20 pizzas.
C. 5 pizzas.
D. 10 pizzas.
Answer: D
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Free riding is not a problem in the market for a private good because
A) people who do not pay for the good can be excluded from consumption. B) the good is a rival good. C) the market eliminates the problem of externalities. D) The question errs because free riding is a problem in providing private goods.
Refer to the table below. Suppose the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50 and Big Oaks is producing the profit-maximizing quantity of lumber and paper products. If the profit from each unit of paper product increases from $3.00 to $4.00 and the profit for each unit of lumber does not change, to maximize profit, Big Oaks should produce a
________ proportion of paper products and produce ________ units of paper products and lumber.
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) smaller; less
B) smaller; more
C) greater; less
D) greater; more
The price of gasoline is $3.30 per gallon. If one gallon of gasoline provides the same marginal utility as a gallon of milk, how much will the gallon of milk cost at consumer equilibrium?
a. $1.00 b. $1.65 c. $3.30 d. $6.60
A carbon tax placed on coal would:
A. raise the costs of goods produced using coal, raising their price, and thus decreasing the quantity demanded of these goods. B. not affect emissions of greenhouse gases. C. shift the demand curve for coal to the right. D. make coal a more attractive form of energy.