In a map showing short-run cost functions, one curve begins at the origin and rises as output expands. It is called the

Sarah initially used her cell phone mostly to make important business calls

However, when she was informed that henceforth her phone bills would be reimbursed by her employer, she started using her cell phone to make frequent calls to her friends and relatives. This behavior is an example of ________. A) moral hazard B) a negative externality C) the prisoners' dilemma D) the free-rider problem

Hardcover Books The marginal cost of printing a typical hard cover novel is $12.00 while the same book in paperback has a marginal cost of $2.00 lower. So why do publishers charge an average of $15 more for hard cover books?