When money is accepted as payment in a market transaction, it is functioning as a
A) store of value.
B) unit of accounting.
C) medium of exchange.
D) unit of investment.
C
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You are an entrepreneur with an innovative idea for a new buisness. In which kind of economy would you have the most opportunity to try to achive success?
a) market economy b) command economy c) traditional economy d) economy for sale
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island bikes charges a different price in the morning and in the afternoon, then what will be the total economic surplus?
A. $49 B. $3 C. $9 D. $41