For people who live near a bus route, a subway station, or a commuter rail line, public transportation provides a substitute to driving their own cars
So, for these people, the cross-price elasticity of demand between gasoline and public transportation is
A) zero. B) positive. C) negative. D) infinity.
B
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Consider four possible benefits of a water resources project: I. Provides employment to construction workers currently building houses. II. Provides electric power to the market. III. Provides reduced flood risk to individuals living along the river. IV. Raises the profits of MacDonald's stands in the area that serve construction workers. Which of these are social benefits of the project?
a. All of them. b. I, II, and III, but not IV. c. I and III, but not II and IV. d. II and III, but not I and IV.
Profit-maximizing monopolists choose a level of output such that: a. average total cost is minimized
b. price equals marginal revenue but exceeds average variable cost. c. price equals marginal cost but exceeds average variable cost. d. marginal revenue equals marginal cost.