This preview shows page 1. Sign up to view the full content.
Unformatted text preview: 13.50
C) not enough information to answer the question
D) $25 Version 1 Page 6 29. Melvin is the only guy town selling "medical" marijuana--he is a monopolist and
demand is strong. He can sell 3 tons at $9k a ton, but if he lowers his price from $9K a
ton to $8K a ton he can sell 4 tons. For Melvin, the marginal revenue associated with the
4th ton is
at first the revenue is $9k x 3 (=27), then it changes
C) Not enough information to figure it out $8k x 4 (=32), the marginal revenue is the difference
30. George makes candy bars; production requires two inputs: chocolate, c, and sugar, s.
The constant MRTScs 3 / 4 . George will likely use both chocolate and sugar to produce
his candy bars
31. You go to college. It costs money, precludes you from working, and is more stressful
than not going to college. Given this, tranquility is part of the opportunity cost of going
32. Branding cattle helps to maintain and enforce property rights.
Putting your name on something is a way of protecting your property rights;
View Full Document
This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07