Lawrence is a photographer. He has $230 to spend and wants to buy either a flash for his camera or a new tripod. Both the flash and tripod cost $230, so he can only buy one. This illustrates the principle that
a. trade can make everyone better off.
b. people face trade-offs.
c. rational people think at the margin.
d. people respond to incentives.
b
Economics
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Refer to the diagram. This firm's average fixed costs are:
A. not shown.
B. the vertical distance between AVC and MC.
C. the vertical distance between AVC and ATC.
D. equal to the per unit change in MC.
Economics
Which of the following is an example of a price floor?
A. Stock prices hit a floor lastnight B. Safeway charges $1 more than Fred Meyer charges for a 5 pound bag of sugar C. The government guarantees that potato farmers will receive at least $50 a ton D. The lowest price of gasoline this year was $2 per gallon
Economics