Because the height of the demand curve measures the marginal value of the good to consumers, the fact that a demand curve slopes downward to the right illustrates that
a. as more of a product is consumed, consumers will value additional units less.
b. as more of a product is consumed, consumers will value additional units more.
c. the value of additional units of the good is unrelated to the amount consumed.
d. the cost of production for a good generally rises as more of it is produced.
A
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A popular entertainer gives a concert in a 50,000 seat stadium. To give her fans a break, she charges only $50 a seat instead of the customary $75 a seat
At $75 a ticket, there would have been 50,000 tickets sold, and at $50, there are 80,000 people who want tickets. As a consequence of the generosity of the entertainer A) her fans are made better off. B) a more fair system of pricing the tickets has been found. C) another type of system will have to be found to allocate the tickets, making some of her fans better off and others worse off. D) her fans are made worse off since there is an excess demand of 30,000 tickets.
Which of the following is NOT a correct description of opportunity cost of capital?
A) It is the normal rate of return on investment. B) It is normally included in accounting costs. C) It is the income sacrificed by not investing in another firm. D) It is an implicit cost.