Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 If Island Bikes charges a single price to all of its customers, then how many bikes will it rent out each day?

A market for pollution permits can efficiently allocate the right to pollute by using the forces of supply and demand

a. True b. False Indicate whether the statement is true or false

During the financial crisis Congress and President Obama authorized tax cuts and increases in government spending. According to the Phillips curve, in the short run these policies should have

a. reduced inflation and unemployment. b. raised inflation and unemployment. c. reduced inflation and raised unemployment. d. raised inflation and reduced unemployment.