When marginal revenue is zero

If crude oil is a variable factor of production for a firm, then an increase in the price of crude oil will lead to

Suppose Aiko is a potter who makes mugs. Her total costs depend on the number of mugs she makes each day, as shown in the accompanying table.   Aico’s Cost Table Number of Mugs Per Day Total Cost Per Day 0 $ 10 1 $ 14 2 $ 19 3 $ 25 4 $ 32 5 $ 40 6 $ 49   Aiko’s fixed cost is ______ per day.

Suppose Jack just booked a ticket to fly home to see his family for Thanksgiving. When he purchases the ticket, he decides to purchase travel insurance that allows him to get a full refund on his ticket if he’s too sick to travel. Knowing this, Jack doesn’t bother to take care of himself in the weeks leading up to the trip, reasoning that if he ends up being too sick to travel, then he can always get a full refund. Jack’s failure to take care of himself in the weeks leading up to his trip is an example of

If the production of a good generates a negative externality, then at the market equilibrium quantity, the marginal cost to society of another unit of the good will be

The sum of producer surplus and consumer surplus is

If demand for the product you make were to suddenly decline, you would expect the equilibrium price of the product to fall, which would lead to

De Beers accounts for approximately 80% of diamond sales worldwide. The source of its market power is

One thousand adults live in Milltown. Every day, they all leave work at 4:30 p.m., arrive home at exactly 5:00 p.m., and go to bed at 9:00 p.m. Three fundraisers—Alpha, Beta, and Charlie—have targeted Milltown’s population. To get a donation, they must call Milltown’s residents after they get home from work but before they go to bed. Because the charities raising the funds are identical, the first to call a willing donor will get the donation. Beta’s manager has decided that the best time to call is 7:00 p.m. because it is exactly halfway between 5:00 p.m. and bedtime. Which of the following is true?

If a monopolist calculates its marginal revenue to be $15 and marginal cost to be $16, then the monopolist should