Money that has value because the government has declared it legal tender to pay debts:

Fred's demand schedule for movie DVDs is as follows: At $30, he would buy 1; at $25, he would buy two; at $15, he would buy 3; and at $10, he would buy 4 . If the price of movie DVDs equals $25, the consumer surplus Fred receives from purchasing movie DVDs would be: a. zero. b. $5

c. $25. d. $55.

One baker can bake 15 pies in a day. Two bakers can bake 35 pies in a day. If the marginal revenue product of hiring the second baker is $200, then in a perfectly competitive product market

a. each pie sells for $10. b. there are diminishing marginal returns. c. there are decreasing economies of scale. d. they are operating in a constant cost industry. e. the marginal cost of production is $200.