Author Question: There is only one gas station within hundreds of miles. The owner finds that when she charges 3 a ... (Read 35 times)

cookcarl · **on:** Jun 30, 2018

There is only one gas station within hundreds of miles. The owner finds that when she charges 3 a gallon, she sells 199 gallons a day, and when she charges 2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:
a. .01.
b. 1.
c. 2.99.
d. 3.
e. 600.

Question 2

If Jane's marginal benefit as a consumer in the jeans market is larger than the price of a pair of jeans:
a. Jane will not purchase any more jeans.
b. Jane can benefit by purchasing more jeans.
c. the opportunity cost of a pair of jeans is lower than the price.
d. Jane will decrease her total utility by purchasing more jeans.