Sue is maximizing her utility. Her MUx/Px = 10 and MUy = 40. Then the price of Y must be
A. $1.
B. $4.
C. $10.
D. $40.
Answer: B
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The efficient outcome is ________
A) 0 tons per week B) 300 tons per week C) 400 tons per week D) None of the above answers is correct.
Disneyland price discriminates because
A) everyone loves going to The Happiest Place on Earth, so they'll pay whatever Disneyland wants to charge. B) children are cheaper to service, so Disneyland can charge lower prices for a children's ticket. C) only a certain number of people can get into Disneyland at any given time, limiting supply, and the market demand curve is nearly completely inelastic. D) local residents likely wouldn't go to the park at prices Disneyland can charge for tourists, which would reduce Disneyland's profits.