If the benefits of X = $100 and the price of X = $50, then
A. you should not buy X.
B. you will be indifferent between buying X and keeping your money.
C. $100 is the reservation price.
D. $0 is the reservation price.
Answer: C
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Assume a company has a cafeteria where it lets all its workers eat without making them pay up front. Instead, at the end of the month the total cost of eating at the company cafeteria is added up and divided by the total number of workers
This amount is then deducted from each worker's paycheck. Explain how this practice may lead to a negative externality.
The economic expansion that began in 1991
a. lasted approximately five years. b. lasted approximately twelve years. c. lasted approximately nine years. d. was the longest expansion in U.S. history. e. was the second longest expansion in U.S. history.