Suppose a McDonald's Big Mac costs 30 pesos in Argentina. At the same time, suppose the exchange rate between the peso and the euro is roughly 15 pesos per euro. According to purchasing power parity, a Big Mac in Europe should cost:

Which of the following is an example of signaling in a market with asymmetric information?

A) Certification of used cars by third parties B) Rent controls imposed by the government C) Discounts offered by sellers during the holiday season D) Taxation of alcoholic beverages

Refer to Figure 5-2. The true marginal cost of the last unit produced is represented by the price

A) Pa. B) Pb. C) Pc. D) Pf.