EBK MICROECONOMICS
2nd Edition
ISBN: 9780134458496
Author: List
Publisher: VST
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Question
Chapter 3, Problem 3P
To determine
Type of optimization in the following cases:
(a) When John derives more benefits from watching a new batman movie than from watching a new Spiderman movie.
(b) When Marcia determines net benefit
(c) When Nikki jogs for
(d)When Reagan’s net benefit from purchasing a queen bed is
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The scenarios each illustrate the principle of economics. Match each scenarios with the principle that best fits it
You are currently in a labeling module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop.
On Black Friday, there are huge sales for electronics at many retail stores. David must decide between buying a camera at one store and buying a flat-screen TV at another store and buying one means he will lose the ability to purchase the other.An educational software company wants to expand the number of economics questions that it offers and is considering hiring another economist. It compares how much adding another worker will improve the product with the additional cost.To entice students to keep themselves up to date with economic current events, an instructor offers extra credit to students for participating in an online discussion forum, and this sparks a lively debate about environmental policy.…
Say that Laura (L), Maureen (M), and Carrie
(C) are three individuals who are
contemplating the purchase of some
amount of good X. Units of X can be
produced at a constant marginal cost of 24.
The following equations show how the
marginal benefit (M B) that each individual
places on X varies with the quantity she
consumes:
L: MB(L) = 30 - X
M: MB(M) = 24 - X
C: (MB(C) = 20 - X
(a) How much of this good should they
purchase if X is a private good?
(b) How much of this good should they
purchase if X is a public good?
(c) Construct a diagram to illustrate your
answer to part b.
Question 10
Which of the following startements about network externalities is CORRECT?
Air pollution is an example of a network externality.
For a good with network externalities, the number of people who are willing to
buy a unit of the good is uniquely determined by the price.
Network externalities are always positive.
The manufacturer of a new good with network externalities might give away a
free version of the good.
For a good with network externalities, one person's valuation of the good is
always increasing in the number of other people using the good.
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