Gooey Flakes is the only ready-to-eat cereal that has chocolate syrup injected into each flake. The machine that injects the syrup into the flakes can do nothing else. Which of the following is true?
a. All of the machine's earnings are economic rent.
b. All of the machine's earnings are opportunity cost.
c. The supply curve for this machine is horizontal.
d. The demand curve for this machine is horizontal.
e. The demand curve for this machine is vertical.
A
Economics
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If a bank has $6,000 in checkable deposits and the required reserve ratio is 0.2, then the bank can lend: a. $4,000
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Which of the following can defeat the profit-maximizing strategy of price discrimination?
a. consumer surplus b. deadweight loss c. market power d. arbitrage
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