Author Question: Considering all costs of production, the marginal cost of producing a hot dog is 1.00. The price of ... (Read 70 times)

ericka1 · **on:** Jun 29, 2018

Considering all costs of production, the marginal cost of producing a hot dog is 1.00. The price of a hot dog is 1.50. Thus, the producer surplus from this hot dog is

A) 1.50.
B) 1.00.
C) .50.
D) Zero, because 1.50 is the most anyone would pay for a hot dog.

Question 2

Average tariff levels in the United States in the last decade are

A) about equal to the average since 1930.
B) above the average since 1930.
C) positive, but below the average since 1930.
D) zero, as there are no longer any tariffs in the United States.