If Stephanie buys a laptop for $700 and the maximum she would have paid was $1,000, which of the following is true?
a. Stephanie received consumer surplus of $1,000.
b. Stephanie received producer surplus of $700.
c. Stephanie received a consumer surplus of $700.
d. Stephanie received a consumer surplus of $300.
d
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An ultimatum game is:
A. the only game played by unions in reality. B. one in which one player makes an offer and the other player has the simple choice of whether to accept or reject. C. a repeated sequential game. D. one in which one player makes an offer and the other player has the choice of whether to accept or offer a counteroffer.
Refer to the information provided in Figure 6.10 below to answer the question(s) that follow.
Figure 6.10Refer to Figure 6.10. The current price of a turkey sandwich is $4. If Kyle is currently buying seven turkey sandwiches a week, he ________ maximizing utility because the marginal utility ________ than its price.
A. is; from the seventh sandwich is greater B. is not; gained from the seventh sandwich is less C. is; from the seventh sandwich is less D. is not; gained from the seventh sandwich is greater