Author Question: Suppose a buyer and a seller agree to split the cost of hiring an interpreter who charges 4 per ... (Read 76 times)

j.rubin · **on:** Jun 30, 2018

Suppose a buyer and a seller agree to split the cost of hiring an interpreter who charges 4 per transaction. The seller's opportunity cost is 35, while the buyer values the good at 45 . If the gains from this transaction are split equally between the buyer and the seller, how much will each gain from this transaction?
a. 10
b. 4
c. 3
d. 5

Question 2

In the short run when output is zero, total cost is:
a. equal to total variable cost.
b. greater than total fixed cost.
c. equal to total fixed cost.
d. less than total fixed cost.
e. less than total variable cost.