The owner of a scenic waterfall is trying to decide whether to rent the site to a manufacturing firm as an industrial power source or to rent it to a recreational association, which would turn the site into a park and campground
Which of the following statements is true? A) An increase in the price of fossil fuels will increase the cost of renting it to the recreation association.
B) Social welfare is maximized when the owner rents to the higher bidder.
C) The cost to the owner of renting to one or the other depends entirely upon the owner's preferences between economic growth and recreational facilities.
D) The owner can choose without regard to cost because the site is a free natural resource.
E) The owner can choose without regard to cost insofar as the waterfall is privately owned.
A
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Refer to Figure 7-4. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 200. B) 500. C) 700. D) >700.
If Justin is willing to pay as much as $100 for a ticket to see the Rolling Stones, but is able to buy a ticket for $55, then he has a(n)
a. consumer surplus of $45 b. consumer deficit of $45 c. marginal utility of $45 d. marginal utility of $55 e. total utility of $155