Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $24 dollars
A) Curly will receive $26 of consumer surplus from buying one bottle.
B) Larry will receive $15 of consumer surplus since he will buy no bottles.
C) Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles.
D) Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each. Larry will buy no bottles.
A
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What will be an ideal response?
The rail system in Metropolis is a natural monopoly. If the government regulates the system by setting the fare equal to marginal cost, which of the following will be true?
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