In the competitive market for balloon rides, marginal social cost equals marginal social benefit when 3,000 balloon rides a day are taken and the price of a ride is $130. Which of the following statements is TRUE?
A) There is a free-rider problem.
B) Too many rides are available.
C) Too few rides are available and the price of a balloon ride is too high.
D) The efficient quantity of balloon rides is 3,000 a day.
D
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The above table gives Sue's marginal utility schedules for sub sandwiches and Mountain Dew, the only products Sue consumes. Suppose initially the price of a sub sandwich is $4 each and the price of a Mountain Dew is $2 each. Sue's income is $12
If the price of subs rises to $6 each, Sue will consume A) more Mountain Dews. B) fewer subs. C) fewer Mountain Dews so that she can still afford to buy two subs. D) Both answers A and B are correct.
The salary of the president of the United States in 2000 was $400,000 . In 1940, the president's salary was $75,000 . If the Consumer Price Index was 8.1 in 1940 and 100 in 2000 . the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be:
a. less than $75,000. b. less than $400,000. c. approximately $668,850. d. approximately $926,000.