Is the marginal benefit from the concert zero? Explain your answer
What will be an ideal response?
The marginal benefit from the concert was not zero. Regardless of the price paid for the concert, Eminem's fans enjoyed the concert and there-fore enjoyed a marginal benefit from it.
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Mars Inc produces 100,000 boxes of Snickers bars which sell for $4 a box. If variable costs are $3 per box, and it has $150,000 fixed operating costs, in the short run, it should
A) shut down as fixed costs are not being covered. B) keep producing as profits are $50,000. C) keep producing as variable costs are being met. D) keep producing as total costs are being recovered.
Research indicates that the more independent the central bank,
A) the smaller the budget deficit. B) the higher the nominal interest rate. C) the lower the rate of inflation. D) the larger the time inconsistency problem in making policy. E) the greater the likelihood of a "war of attrition" over policy.