Which of the following would be a private cost to a cigarette manufacturer?
a. price of leaf tobacco
b. cost to the government of the hospital expenses of indigent smokers
c. increased risk of cancer to the nonsmoking passengers in the smoker's car pool
d. price of a pack of cigarettes
e. loss in utility received because the smoker must stand outside her office building in the winter to smoke
A
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In the above figure, economies of scale are present up to an output level of
A) 5,000 pounds of coffee. B) 10,000 pounds of coffee. C) 13,000 pounds of coffee. D) 15,000 pounds of coffee.
Suppose a consumer spends her income on two goods: music CDs and DVDs. The price of a CD is $8, and the price of a DVD is $20 . If we graph the budget constraint by measuring the quantity of CDs purchased on the vertical axis and the quantity of DVDs on the horizontal axis, what is the slope of the budget constraint?
a. -5.0 b. -2.5 c. -0.4 d. The slope of the budget constraint cannot be determined without knowing the income the consumer has available to spend on the two goods.