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Question
Figure 4-1
Figure 4-1 shows Arnold's demand curve for burritos.
Refer to Figure 4-1. If the market price is $2.00, what is Arnold's consumer surplus?
A) $0.50
B) $1.00
C) $1.50
D) $3.00
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Perfectly competitive industries tend to produce low-priced, low-technology products.
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If a firm in a perfectly competitive industry introduces a lower-cost way of producing an existing product, the firm will be able to earn economic profits in the long run.
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Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
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B) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved in the short run and the long run.
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If a perfectly competitive firm raises the price it charges to consumers, which of the following is the most likely outcome?
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A firm's expansion path
A) is the same thing as its long-run average cost curve.
B) is a curve that shows a firm's cost-minimizing combination of inputs for every level of output, holding input prices constant.
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Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
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B) the inputs are not equally productive in the two countries.
C) the prices of the inputs are not the same in the countries.
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B) the relative input prices.
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An expansion path shows
A) the level of sales necessary for a firm if it wants to expand.
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D) the returns to scale at each level of output.
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Maximizing the level of output for a given total cost of production
A) is equivalent to producing the profit maximizing output level.
B) is equivalent to minimizing cost for a given level of output.
C) necessitates using only relatively low-priced inputs.
D) will maximize total revenue.
Q:
Golda Rush quit her job as a manager for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,000 per year, invested her savings of $30,000 (which was earning 5 percent interest) and borrowed $10,000 from a close friend, agreeing to pay 5 percent interest per year. In her first year, Golda spent $18,000 to rent a salon, hired a part-time assistant for $12,000 and incurred another $15,000 on equipment and hairdressing material. Based on this information, what is the amount of her implicit costs?
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C) $42,000
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Which of the following would be categorized as an opportunity cost?
a. not being able to spend your $10,000 savings if you sink the money in your business
b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above