Microeconomics 6th Edition

Figure 4-3 Figure 4-3 shows the market for tiger shrimp. The market is initially in equilibrium at a price of $15 and a quantity of 80. Now suppose producers decide to cut output to 40in order to raise the price to $18. Refer to Figure 4-3. At a price of $18 consumers

Figure 4-4 Refer to Figure 4-4. The figure above represents the market for pecans. Assume that this is a competitive market. Which of the following is true? A) If the price of pecans is $3 the output will be economically efficient but there will be a deadweight loss. B) If the price of pecans

Figure 17-3 Refer to Figure 17-3. In Panel A, at low wages (segment i) A) the substitution effect outweighs the income effect. B) the income effect outweighs the substitution effect. C) the substitution effect offsets the income effect. D) labor suppliers demand more leisure as wages increase. Answer: A Answer: A Answer: A Table 2-16 Refer to Table

Figure 15-11 In 2011, Verizon was granted permission to enter the market for cable TV in Upstate New York, ending the virtual monopoly that Time Warner Cable had in most local communities in the region. Figure 15-11 shows the cable television market in Upstate New York. Refer to Figure 15-11. What is

What is accounting profit? A) gross revenue minus explicit costs B) gross revenue minus implicit costs C) gross revenue minus explicit and implicit costs D) the same as economic profit Answer: A Answer: A Answer: A Figure 18-1 Refer to Figure 18-1. Area E+H represents A) the portion of sales tax revenue borne by consumers. B) the portion of

Table 14-7 The payoff matrix shown above assumes that Perfect Plants and Florabunda Florist must decide whether to offer same-day delivery for their products. The matrix shows how much profit each firm will earn if it does or does not offer same-day delivery. The amount of profit for one firm depends

Figure 16-5 Refer to Figure 16-5. Suppose the firm represented in the diagram decides to practice perfect price discrimination. What is the total revenue collected by the firm? A) $6,720 B) $7,680 C) $10,240 D) $13,440 Answer: D Answer: D Answer: D Baxter International, a manufacturer of hospital supplies, acquired American Hospital Supply, a distributor of hospital supplies.

A monopolistically competitive firm that is profitable in the short run will face competition that will eventually eliminate the firm's profits in the long run. But the firm can stave off competition and continue to earn economic profits if A) it can successfully sue its competitors for copyright infringement. B) it can move

Why do most firms in monopolistic competition typically make zero profit in the long run? A) because firms produce differentiated products B) because the lack of entry barriers would compete away profits C) because firms do not produce at their minimum efficient scale D) because the total market is not large enough to accommodate

Local or state offices of the Department of Justice usually set prices for natural monopolies in their jurisdictions. Answer: FALSE Answer: FALSE Answer: FALSE If demand is inelastic, the absolute value of the price elasticity coefficient is greater than one. Answer: FALSE Answer: FALSE Answer: FALSE The income effect of a price change refers to the

The sales revenue a seller receives from the sale of an additional unit of goods is called the marginal benefit. Answer: TRUE Answer: TRUE Answer: TRUE A positive technological change will cause the supply of a good to increase. Answer: TRUE Answer: TRUE Answer: TRUE The U.S. government would never approve a proposed merger between two

For which of the following products is social influence likely to have the greatest impact? A) toothpaste B) restaurants C) high-blood pressure medication D) school textbook Answer: B Answer: B Answer: B In 1930, the U.S. government attempted to help domestic firms that were harmed by the Great Depression by A) establishing the General Agreement on Tariffs and Trade

A corporation is owned by its A) board of directors. B) stockholders. C) employees. D) CEO. Answer: B Answer: B Answer: B Figure 15-4 Figure 15-4 shows the demand and cost curves for a monopolist. Refer to Figure 15-4. What is the profit-maximizing/loss-minimizing output level? A) 600 units B) 800 units C) 940 units D) 1,160 units Answer: A Answer: A Answer: A Table 12-1 Table

An agreement among firms to charge the same price or otherwise not to compete is called A) a payoff matrix. B) a subgame-perfect equilibrium. C) a Nash equilibrium. D) collusion. Answer: D Answer: D Answer: D An expansion path shows A) the level of sales necessary for a firm if it wants to expand. B) the level of long-run

Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price." A) It is not true. Revenue will increase as the price of the product increases only if demand is elastic. B) This statement is not

The government makes all economic decisions in a market economy. Answer: FALSE Answer: FALSE Answer: FALSE The level of output at which all economies of scale have been exhausted is known as A) constant returns to scale. B) minimum efficient scale. C) the economically efficient output level. D) optimal economic size. Answer: B Answer: B Answer: B If the production

A subgame is a simultaneous game embedded in a sequential game. Answer: FALSE Answer: FALSE Answer: FALSE The success of Walt Disney's animated film The Lion King in 1994 increased production of animated films, increasing the demand for animators much faster than the supply of animators was increasing. As a result, in the market

Which of the following would cause an increase in the supply of peanut butter? A) a decrease in the price of grape jelly (assuming that peanut butter and grape jelly are complements) B) an increase in the price of peanut butter C) an increase the price of a product that producers sell instead

Figure 5-7 Refer to Figure 5-7. The marginal benefit of reducing pollution curve is the same curve as A) the supply of pollution reduction curve. B) the demand for pollution reduction curve. C) the positive externality curve. D) the external benefit curve. Answer: B Answer: B Answer: B A merger between U.S. Steel and General Motors would be

Farah has $100 to spend each month on bread and chicken. Suppose the price of bread is $4 a loaf and the price of chicken is $5 per pound. a. Draw her budget constraint and label it BC0. Put bread on the horizontal axis and chicken on the vertical axis. Be

Consumer surplus in a market for a product would be equal to ________ if the market price was zero. A) zero B) the area between the supply curve and the demand curve C) the area above the supply curve D) the area under the demand curve Answer: D Answer: D Answer: D If a corporate bond with

Sequential games are often used to analyze which two types of business strategies? A) whether to invest in research and development and whether to offer employees an early retirement package B) deciding to merge with another firm and deciding how much to spend on an advertising campaign C) deciding to end production of

A curve that shows all the combinations of two inputs, such as labor and capital, that will produce the same level of output is called A) an isoquant. B) an isocost line C) a budget line. D) an optimal input combination curve. Answer: A Answer: A Answer: A Table 6-4 The publisher of a magazine gives his staff

If firms in a monopolistically competitive industry are making profits in the short run A) barriers to entry will be erected to keep out rivals. B) some firms will ultimately exit the industry. C) they will resort to advertising wars to help sustain these profits. D) new firms will enter the market. Answer: D Answer:

Because the monopolistically competitive firm faces a ________ demand curve for its product, it ________ the price of its output. A) downward-sloping; cannot influence B) horizontal; can influence C) horizontal; cannot influence D) downward-sloping; can influence Answer: D Answer: D Answer: D The marginal rate of technical substitution is A) the rate at which a firm is able

If the market for a product is broadly defined, then A) the good has many complements. B) there are few substitutes for the product and the demand for the product is relatively inelastic. C) there are many substitutes for the product and the demand for the product is relatively elastic. D) the expenditure on

In which market structure is it not possible to practice price discrimination? A) perfect competition B) monopolistic competition C) oligopoly D) monopoly Answer: A Answer: A Answer: A Consider an industry that is made up of nine firms each with a market share (percent of sales) as follows: a. Firm A: 30% b. Firm B: 20% c. Firms C, D,

Figure 5-9 Companies producing toilet paper bleach the paper to make it white. The bleach is discharged into rivers and lakes and causes substantial environmental damage. Figure 5-9 illustrates the situation in the toilet paper market. Refer to Figure 5-9. The private profit-maximizing output level is A) Q1. B) Q2. C) Q3. D) Q4. Answer:

Figure 18-7 Figure 18-7 shows the Lorenz curve for a hypothetical country. Refer to Figure 18-7. The second highest 20 percent of households A) earn 24 percent of the society's total income. B) earn 28 percent of the society's total income. C) earn 42 percent of the society's total income. D) earn 72 percent of

Which of the following statements is true? A) Opportunity cost = explicit cost - implicit cost. B) Total cost = fixed cost + implicit cost. C) Total cost = fixed cost + variable cost. D) Variable cost = wages + salaries + benefits. Answer: C Answer: C Answer: C All centrally planned economies A) have been political dictatorships. B)

An individual's labor supply curve shows A) the maximum wage rates offered to that individual by various potential employers. B) the relationship between wages and the quantity of labor that she is willing to supply. C) the relationship between wages and the quantity of labor that a firm is willing to employ. D) the

If, for a given percentage decrease in price, quantity supplied decreases by a proportionately smaller percentage, then supply is A) unit elastic. B) perfectly elastic. C) relatively inelastic. D) elastic. Answer: C Answer: C Answer: C A monopolistically competitive firm will A) charge the same price as its competitors do. B) always produce at the minimum efficient scale of

Figure 9-2 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. Refer to Figure 9-2. The increase in domestic producer surplus as a result of the tariff is equal to the area A) C. B) C + G. C) A + C +

Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questions that follow the table. a.

Figure 13-11 Refer to Figure 13-11. The diagram depicts a firm A) in a constant-cost industry. B) in an increasing-cost industry. C) in long-run equilibrium. D) that is making short-run losses. Answer: C Answer: C Answer: C When someone takes out a mortgage loan to buy a house, the mortgage lender can take possession of the house

The key characteristics of a monopolistically competitive market structure include A) few sellers. B) sellers selling similar but differentiated products. C) high barriers to entry. D) sellers acting to maximize revenue. Answer: B Answer: B Answer: B Table 4-4 Table 4-4 shows the demand and supply schedules for the labor market in the city of Pixley. Refer to Table

When demand is elastic, a fall in price causes total revenue to rise because A) when price falls, quantity sold increases so total revenue automatically rises. B) the increase in quantity sold is large enough to offset the lower price. C) the percentage increase in quantity demanded is less than the percentage fall

The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services. How does this affect the digital photo printing market? A) The demand curve for digital photo printing services shifts to the right. B) The demand curve for digital photo printing services shifts

If consumers believe the price of iPads will decrease in the future, this will cause the demand for iPads to decrease now. Answer: TRUE Answer: TRUE Answer: TRUE A consumer maximizes her total utility from a bundle of goods when her marginal utility from each good is equal. Answer: FALSE Answer: FALSE Answer: FALSE An increase

The Trans-Pacific Partnership (TPP) would ________ tariffs on most goods and services shipped between partnership countries and also ________ so-called non-tariff barriers to trade, such the licenses governments require to import some goods. A) eliminate; reduce B) raise; raise C) lower; raise D) lower; eliminate Answer: A Answer: A Answer: A ________ refers to the reduction in

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a A) tariff. B) quota. C) quantity floor. D) barricade. Answer: B Answer: B Answer: B Congressman Murphy made the following proposal: "We should establish policies that completely eliminate air pollution. This is the only

A perfectly competitive firm will maximize its profit at the rate of output where the vertical distance between its total revenue curve and total cost curve is the largest. This is the same rate of output where A) average total cost equals marginal revenue. B) marginal revenue equals marginal profit. C) marginal revenue

In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it cannot benefit by trading with the other country. Answer: FALSE Answer: FALSE Answer: FALSE A market failure arises when an entire sector of the economy (for example, the airline industry) collapses because of

Indirect finance includes the sale by a corporation of stocks or bonds, as well as borrowing money from a bank. Answer: FALSE Answer: FALSE Answer: FALSE As output increases, the distance between average total cost and average variable cost increases. Answer: FALSE Answer: FALSE Answer: FALSE Horizontal equity is achieved when taxes are collected from those

If the price of peaches, a substitute for plums, decreases the demand for plums will increase. Answer: FALSE Answer: FALSE Answer: FALSE Trade only occurs if there are only winners, and no losers, as a result of the trade. Answer: FALSE Answer: FALSE Answer: FALSE Economic profit is the difference between a firm's revenue and its

Table 14-4 Alistair Luggage and Baine Baggage are the only firms selling luggage in the upscale town of Montecito. Each firm must decide on whether to increase its advertising budget to compete for customers. If one firm increases its advertising budget but the other does not, then the firm with the higher advertising

Table 2-12 Refer to Table 2-12. This table shows the number of labor hours required to produce a digital camera and a bushel of wheat in China and South Korea. a. Assume each country has a total of 9,000 labor hours to devote to the production of the two goods and draw

Which of the following exemplifies the tragedy of the commons? A) Residents on the northern coast of California receive only one public broadcasting signal which may be eliminated altogether if government funding is cut. B) The Pleasant Hill community is growing so fast that the city's only post office is not able

When BMW, an German company, purchases a welding machine that was made in Toronto, the purchase is A) both a German and a Canadian import. B) a German import and a Canadian export. C) a German export and a Canadian import. D) neither an export nor an import for either country. Answer: B Answer: B Answer:

The wage rate is the opportunity cost of A) working. B) working overtime. C) leisure. D) consumption. Answer: C Answer: C Answer: C Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What

A personal exemption refers to A) the tax rate that applies to a particular tax bracket. B) the tax bracket that represents basic living expenses. C) an amount representing basic living expenses that can be subtracted from income. D) a dispensation that allows certain qualifying individuals not to pay federal taxes. Answer: C Answer: C Answer:

In discussions of barriers to entry, what is meant by the term "virtuous cycle"? A) A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products. B) A virtuous cycle refers to a firm using the profits from a monopoly in one

According to a study of the U.S. demand for alcoholic beverages, the price elasticity of demand for beer is -0.30. Which of the following could explain why the price elasticity of demand for beer is low? A) Beer is an inferior alcoholic beverage. B) More and more people are switching to wine

The following appeared in a Florida newspaper a week after a hurricane hit the state. "Floridians are relieved that the storm produced no fatalities but homeowners face weeks, if not months, of rebuilding. Matters are made worse by the soaring prices of plywood and other building materials that always follow

Suppose the consumer's income increases while the prices of the goods remain constant. Then the A) budget constraint shifts inward parallel to the original budget constraint. B) budget constraint shifts outward parallel to the original budget constraint. C) indifference curves shift outward away from the origin. D) indifference curves become flatter. Answer: B Answer: B Answer: B Figure

Barbara, the consummate hostess, proudly announced as she served dessert, "A port is often the perfect end to a meal, sipped with a piece of my scrumptious chocolate cake." Evidently, Barbara views port and chocolate cake as A) luxury items. B) necessities. C) complementary goods. D) substitutes for other desserts. Answer: C Answer: C Answer: C If

In economics, the term "free rider" refers to A) a person who evades taxes. B) a supervisor who delegates menial time-consuming activities to others. C) one who volunteers her services. D) one who waits for others to produce a good and then enjoys its benefits without paying for it. Answer: D Answer: D Answer: D Table 3-1 Refer

Figure 5-2 Figure 5-2 shows a market with a negative externality. Refer to Figure 5-2. The deadweight loss due to the externality is represented by the area A) abc. B) abf. C) abd. D) ade. Answer: B Answer: B Answer: B Which of the following is an example of a positive externality? A) banning the sale of

If the number of employees who quit, are fired, or retire increases while the hiring of new employees declines, this indicates that the A) labor demand curve is shifting to the right. B) labor supply curve is shifting to the right. C) labor demand curve is shifting to the left. D) labor supply curve

If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm A) is earning a profit. B) should shut down. C) should increase output. D) should increase price. Answer: B Answer: B Answer: B The government of Silverado raises revenue through a general income tax paid by all

Table 12-1 Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Refer to Table 12-1. Suppose the fixed cost of production rises by $500 and the price per unit is still $8.

Table 17-1 Refer to Table 17-1. Suppose the output price is $3. If the wage rate is $90, what is the profit-maximizing quantity of labor that the firm should hire? A) 7 units B) 5 units C) 4 units D) 3 units Answer: A Answer: A Answer: A Figure 12-11 Refer to Figure 12-11. If this is a constant-cost

Figure 11-11 Figure 11-11 illustrates the long-run average cost curve for a firm that produces picture frames. The graph also includes short-run average cost curves for three firm sizes: ATCa, ATCb and ATCc. Refer to Figure 11-11. In the short run, if the firm sells fewer than 5,000 picture frames per

Table 11-7 Table 11-7 shows cost data for Lotus Lanterns, a producer of whimsical night lights. Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns? A) $1,680 B) $72 C) $14 D) $12.3 Answer: C Answer: C Answer: C Figure 9-1 Figure 9-1 shows the U.S. demand and supply for leather

If a 6 percent increase in income leads to a 4 percent increase in quantity demanded for audio books, the income elasticity of demand is A) -0.67. B) 67. C) 5. D) Answer: B Answer: B Answer: B An income tax system is ________ if marginal tax rates increase as income increases. A) progressive B) regressive C) efficient D) equitable Answer:

Table 12-3 Arnie sells basketballs in a perfectly competitive market. Table 12-3 summarizes Arnie's output per day (Q), total cost (TC), average total cost (ATC) and marginal cost (MC). Refer to Table 12-3. What will Arnie's output be and how much profit will he earn if the market price of basketballs

Table 9-1 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 9-1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. Refer to Table 9-1. Select the statement that accurately interprets the data in the table. A) Sandy has a greater opportunity

The public choice model raises questions about the government's ability to regulate economic activity efficiently. Which of the following statements represents the views of most economists with regard to the role of government? A) Congress should abolish the Food and Drug Administration, the Environmental Protection Agency, and other agencies and commissions because

Table 11-3 Refer to Table 11-3. The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny's House of Boxes. The capital used to produce the boxes is fixed. The average product of labor will equal 66 boxes

Figure 18-2 Figure 18-2 shows a demand curve and two sets of supply curves, one set more elastic than the other. Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, what is the size of the deadweight loss, if there is any? A) the area

When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) constant average fixed costs. Answer: B Answer: B Answer: B Which of the following will prevent firms from engaging in price

Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her economic profit? A) $17,000 B) $25,000 C) $42,000 D) $47,000 Answer: B Answer: B Answer: B Table 4-4 Table 4-4 shows the demand and

The marginal product of labor is calculated using the formula A) L/Q. B) L/Q. C) Q/L. D) Q/L. Answer: C Answer: C Answer: C To maximize profit a monopolist will produce where A) marginal revenue is equal to marginal cost. B) demand for its product is unit elastic. C) revenue per unit is maximized. D) average total cost is

Figure 1-3 Refer to Figure 1-3. Calculate the area of the trapezoid X. A) $270 B) $720 C) $810 D) $2,520 Answer: C Answer: C Answer: C "A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement A) is true only if there are positive externalities in production in the

The Organization of Petroleum Exporting Countries (OPEC) controls about 75 percent of the world's proven oil reserves. Economists refer to OPEC as a cartel because A) OPEC is a monopoly, but it is located outside of the boundaries of any one country. This is the definition of a cartel. B) this is

Most people would prefer to drive a luxury car that has all the options, but more people buy less expensive cars even though they could afford the luxury car because A) car buyers are irrational. B) the total utility of less expensive cars is greater than that of luxury cars. C) the marginal

Table 16-3 Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results. Refer to Table 16-3. Suppose Julie's marginal cost

Table 17-2 Refer to Table 17-2. The marginal profit from hiring the second unit of labor is A) $4,200. B) $1,960. C) $1,800. D) $1,450. Answer: D Answer: D Answer: D The value you give today to money you will receive in the future is called the future payment's A) time-sensitive value. B) future value. C) present value. D) historical value.

If, when you consume another piece of candy, your marginal utility is zero, then A) you want more candy. B) you have maximized your total utility from consuming candy. C) you have not yet reached the point of diminishing marginal utility. D) you should consume less candy. Answer: B Answer: B Answer: B A perfectly competitive firm

An agreement negotiated by two countries that places a numerical limit on the quantity of a good that can be imported by one country from another country is called A) a non-tariff trade barrier. B) an export quota. C) an import quota. D) a voluntary export restraint. Answer: D Answer: D Answer: D If the marginal benefit

Article Summary Recent studies about wealth inequality and income inequality indicate that the American public's estimates of the distribution of wealth and income are quite different than actual data suggests. With respect to wealth, the top 20 percent of households hold more than 84% and the bottom 40 percent hold less

If equilibrium is achieved in a competitive market A) there is no deadweight loss. B) the deadweight loss will be maximized. C) the deadweight loss will equal the sum of consumer surplus and producer surplus. D) the deadweight loss will be the same as the opportunity cost of the last unit of output sold. Answer:

Pierre can produce either a combination of 20 bow ties and 30 neckties or a combination of 35 bow ties and 15 neckties. If he now produces 35 bow ties and 15 neckties, what is the opportunity cost of producing an additional 15 neckties? A) 2 bow ties B) 15 bow ties C)

Rent control is an example of a price ceiling. Answer: TRUE Answer: TRUE Answer: TRUE In the United States, imports and exports make up more than half of GDP. Answer: FALSE Answer: FALSE Answer: FALSE If some monopolistically competitive firms exit their market after suffering short-run losses, the demand curves of remaining firms will shift to

Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally A) prevent rival airlines from competing in that market. B) increase marginal revenue more than marginal cost. C) maximize marginal revenue. D) discourage rivals from matching price cuts. Answer: B Answer: B Answer: B The present value

Table 6-7 Refer to Table 6-7. a. Using the information in the table, calculate the income elasticity of demand for good X and characterize the good. Use the midpoint formula. b. Can you calculate the income elasticity of demand for good Y? If you can, show your calculation and characterize the good. If you cannot,

Table 2-9 Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. Refer to Table 2-9. Does either Guatemala or Honduras have an absolute advantage and if so, in what product? A) Guatemala only has an absolute advantage in producing canoes. B) Honduras only has

Which of the following is likely to occur as the result of the law of diminishing marginal utility? A) Petra's utility from her second apple was less than her satisfaction from her first orange. B) Hudson enjoyed his second slice of pizza more than his first. C) Sabine's utility from her first granola

Consider the market for pilots. What is likely to happen to the equilibrium wage and quantity of pilots if the government enforces a lower mandatory retirement age, say from age 65 to age 62? A) The equilibrium wage and the equilibrium quantity of pilots rise. B) The equilibrium wage and the equilibrium

Consider a public good such as fire protection services. Rich people may benefit more than the poor from such a service because rich people stand to lose more from a fire that destroys property. In this case A) the ability-to-pay principle may support the rich paying more taxes than the poor, but

Table 12-1 Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity? A) 300 units B)

Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market survey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's

Harvey Miller owns a baseball that was hit for a home run by Ted Williams. Harvey, a long-time Boston Red Sox fan, recently refused to sell his baseball for $75,000 even though he would not have paid someone more than $10,000 for the baseball if he did not already own

The United States is a leading exporter of wheat. What explains the comparative advantage of the United States in wheat production? A) positive externalities B) investment by multinational firms such as Archer-Daniels-Midland and Tyson Foods Inc. C) climate and soil conditions in the United States which are well-suited for wheat production D) a large supply

Compare two situations. (A) A firm is not legally responsible for damages that result from air pollution caused by its production of steel. (B) A firm is legally responsible for damages that result from its production of steel. Ronald Coase argued that A) bargaining between the firm and the victims of