Refer to Figure 4-3. If the market price is $2.50, what is the consumer surplus on the first ice cream cone?

Joe's income is $500, the price of food (F) is $2 per unit, and the price of shelter (S) is $100. Which of the following represents his budget constraint?

A) 500 = 100F + 2S B) 500 = 2F + 100S C) S = 500 - 2F D) All of the above.

Which of the following could be threatening to an existing monopoly structure?

a. impossible-to-overcome barriers to entry b. the depletion of alternative resources that could be used to produce the good that is being produced by the monopolist c. the extension of years enforcing a patent right d. mergers e. technological innovation that makes the old techniques of producing a good obsolete