Suppose a buyer hires an interpreter who charges $5 to negotiate a deal with a seller. The buyer's valuation of the good is $50 and the seller's opportunity cost is $35 . If the net benefit to the buyer is equal to the same received by the seller, what is the price agreed upon by the two parties?

An upward shift of the consumption function might be caused by:

a. an increase in disposable income. b. a decrease in disposable income. c. a decrease in the price level. d. a decrease in household wealth. e. an increase in the interest rate.

Which of the following is correct regarding an unregulated natural monopoly?

a. An unregulated natural monopoly will set output where the average cost curve intersects demand, and will set price equal to average cost. b. An unregulated natural monopoly will set output where the marginal cost curve intersects demand, and will set price equal to marginal cost. c. An unregulated natural monopoly will set output where the marginal revenue curve intersects the marginal cost curve, and will set price at the demand curve. d. An unregulated natural monopoly will set output where the average cost curve intersects marginal revenue curve, and will set price at the demand curve.