The following quote alludes to which source of low costs? “Most of those costs are fixed, pretty much. So the best way to make healthy profits is through airfare. In order to keep fares low, airlines need to pack as many people onto the planes as they can.” Group of answer choices Economies of scale Learning curves Differential low-cost access “Policy”

The following quote alludes to which source of low costs? “Most of those costs are fixed, pretty much. So the best way to make healthy profits is through airfare. In order to keep fares low, airlines need to pack as many people onto the planes as they can.” Group of answer choices Economies of scale Learning curves Differential low-cost access “Policy”

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 6QP

See similar textbooks

Similar questions

Which of the following assertions regarding the economic approach is false?a. The goal of economic approach is to maximise net benefits.b. A change is economically efficient as long as marginal benefit is at least as greatas marginal cost.c. A change is economically efficient as long as the marginal social benefits exceedsmarginal private benefits.d. Economists prefer incentive-based policies to command-and-control.
Suppose that a study of changes in admission prices reveals that when the price of admissionto the museum increases by 10%, adults reduce their ticket purchases by 10%, senior citizensreduce their ticket purchases by 20%, college students reduce their ticket purchases by 25%,and children reduce their ticket purchases by 30%. If the cost of having a person visit themuseum is the same regardless of whether the person is an adult, senior citizen, collegestudent, or child, which of the following pricing schemes is the most likely to be used by themuseum and why? Group of answer choices The museum will set one price of $12 for everyone because that is the most fair. $8 for children, $10 for college students, $12 for senior citizens, and $15 for adultsbecause the museum can earn higher profits by charging the lowest price to those with theleast elastic demand and the highest price to those with the most elastic demand. $15 for children, $12 for college students, $10 for senior citizens,…
Define social cost.
According to Adam Smith, the “invisible hand”refers to which of the following?a. The “best interests of society” (publicinterest) will occur as an outcome of themarket process coordinating the selfinterestedinteractions of buyers and sellers(private interest).b. Government interference in markets toprevent greed.c. Bribes and graft that interfere with themarket process.d. The “best interest of society” (public interest)will occur as an outcome of careful guidanceby government authorities in allocatingscarce good and services according to privateinterest.
How do you justify a dollar estimate of the wedge between willingness to pay of buyers and the opportunity cost of suppliers from a firm such as Walmart
11. In 2022, Ibram X. Kendi, author of “How to be an Antiracist” informed Valencia College that he would join your economics professor in a moderated discussion – for one hour – and for a fee of $30,000. Who would argue that such a price is not only appropriate, but, if agreed to, would have created benefits for both parties in the transaction? a. John Locke b. Adam Smith c. Ibram X. Kendi d. The author of “I, Pencil” e. All the above.
What is the Coase theorem? What are its implications?
Q1. In a command economy, _____.a. owners can sell their resources to the highest bidderb. a dictator makes every economic decisionc. no individual or group coordinates the economyd. public ownership of resources is combined with free markets to direct economic activitye. in theory, individual choices are reflected in collective decisions and decisions are made by central planners.Q2. Patrick decided to go to class today instead of going to the movies. He made this decision because:a. Patrick’s additional benefit of going to class exceeds the additional cost of going to the movies.b. Patrick’s additional benefit of going to class exceeds the additional cost of going to class.c. Patrick’s additional benefit of going to the movies exceeds the additional cost of going to the movies.d. Patrick’s additional benefit of going to the movies exceeds the additional cost of going to class.e. Patrick’s additional benefit of going to class equals the additional cost of…
Suppose the U.S. government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000. These doctors would be exemplifying the economic idea that A. optimal decisions are made at the margin. OB. equity is more important than efficiency. OC. people are rational. D. people respond to economic incentives.
A local government is considering building new public hiking trails in town.Suppose that the trails are public goods. There are two types of people in a smalltown economy, 1000 avid hikers and 1000 non-hikers, who have typical individualmarginal benefit curves: MB_H = 350 − 5Q and MB_N = 240 − 6Q for the hikersand the non-hikers respectively, where Q is the miles of trails. On the same graph,draw the marginal benefit curves for each type of person and MB of the overalleconomy. If the marginal cost providing this public good is $27000 per mile whatis the optimal level of the public good?
Let’s say that higher income people have bid up the rent on land in the suburbs, leaving the only low cost homes/land near the city center. Assume the city wishes to limit low income housing via a zoning restriction on something like a minimum lot size. With the appropriate Bid-Rent curves, show the impact of this (before and after).
Which of the following is an example of the ubiquitous tradeoff between equity and efficiency A.) Minimum wages generate unemployment B.) You could spend more time at work without sacrificing study time C.) An increase in the money supply makes everyone richer D.) There is no tradeoff between efficiency and equity, it is a social construct