This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: For a demand curve that is horizontal, the marginal revenue curve A) will be to the right of the ... (Read 107 times)

ARLKQ

  • Hero Member
  • *****
  • Posts: 571
on: Jul 1, 2018
For a demand curve that is horizontal, the marginal revenue curve
 
  A) will be to the right of the demand curve and half as steep.
  B) will be to the left of the demand curve and half as steep.
  C) will be to the right of the demand curve and twice as steep.
  D) will be the same as the demand curve.

Question 2

Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon 50 though he would have paid as much as 80 to go to the show.
 
  Simon knows that he can easily sell the Sting ticket on Craigslist for 60. What is his opportunity cost of seeing Coldplay?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

akemokai

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

If Simon did not go to Coldplay, he would see Sting, since he values seeing Sting for more than the resale value of the ticket. If he goes to Coldplay he can sell the Sting ticket, making an economic loss of 20 (80 - 60). Thus, the opportunity cost of seeing Coldplay is 20. Note: the 50 is not relevant in the calculations because the resale value is 60, not 50.


ARLKQ

  • Member
  • Posts: 571
Reply 2 on: Jul 1, 2018
Excellent

momolu

  • Member
  • Posts: 320
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Human neurons are so small that they require a microscope in order to be seen. However, some neurons can be up to 3 feet long, such as those that extend from the spinal cord to the toes.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
Oxygen dissociation curve Oxygen dissociation curve
Stretching the shoulder muscles with arm in horizontal flexion. Stretching the shoulder muscles with arm in horizontal flexion.
The Kuznets Curve The Kuznets Curve
A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ... A 1000-kg car is slowly picking up speed as it goes around a horizontal unbanked curve whose ...
A company that makes environmental measuring devices has calculated their revenue and costs as ... A company that makes environmental measuring devices has calculated their revenue and costs as ...
Video: Atrial natriuretic peptide (vasodilation) & Aldosterone

For a complete list of videos, visit our video library