Suppose all individuals are identical, and their monthly demand for Internet access from a certain leading provider can be represented as p = 5 - (1/2)q where p is price in $ per hour and q is hours per month. The firm faces a constant marginal cost of $1. Profit-maximizing two-part pricing results in the firm selling

Economists argue for free trade in export markets because

A) all consumers and producers benefit from exporting goods. B) the gains to the U.S. producers outweigh the losses to the U.S. consumers. C) the gains to the U.S. consumers outweigh the losses to the U.S. producers. D) no one is made worse off by exporting goods. E) exporting goods decreases total surplus.

The value in one year of $25 invested today at an annual interest rate of 5 percent will be

A) $25.00. B) $26.25. C) $27.50. D) $30.00.