Marginal cost pricing regulations for a natural monopolist ensure that
a. b and e
b. price reflects the value society places on the last unit produced
c. output will continue to grow until the required subsidy is zero
d. fair pricing schemes are more profitable
e. subsidization will be necessary
A
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Suppose the interest rate is 5 percent per year. The present value of $210 to be received one year from today is
A) $200.00. B) $210.00. C) $215.00. D) $220.50.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206Suppose Smith and Jones begin by producing 0 computers and 220 calculators per hour. If they wish to produce 2 computers and 200 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 12 minutes making computers and 48 minutes making calculators; 1 hour making calculators B. 48 minutes making computers and 12 minutes making calculators; 1 hour making calculators C. 1 hour making calculators; 10 minutes making computers and 50 minutes making calculators D. 30 minutes making each; 30 minutes making each