One way to overcome the problem of the commons is to :

One way to overcome the problem of the commons is to
 
  A) assign property rights so that someone owns the resource.
  B) take away property rights so that no one owns the resource.
  C) leave the market alone because the market will reach an equilibrium in which the efficient amount of the resource is used.
  D) None of the above answers is correct.

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Ques. 2

The figure above shows a typical perfectly competitive corn farm, whose marginal cost curve is MC and average total cost curve is ATC.
 
  Assuming there are no changes in technology, in the long run the lowest possible price for corn is ________ per bushel. A) 2.50
  B) 2.00
  C) 3.00
  D) 3.50

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Ques. 3

In the above figure, Brendan originally consumes at point A. If his income rises and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as
 
  A) E.
  B) B.
  C) C.
  D) D.

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Ques. 4

Does the fact that diamonds, which we do not need to survive, are more expensive than water, which is a necessity, constitute a violation of utility maximization?
 
  What will be an ideal response?

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Ques. 5

Assortative mating means that
 
  A) poor women and rich men tend to marry.
  B) rich women and rich men tend to marry.
  C) rich women and poor men tend to marry.
  D) there are limited incentives to marry anyone.

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Ques. 6

A market has ten firms, whose market shares are given in the table above.
 
  a) If firms I and J wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger? b) If firms A and B wanted to merge, according to the Department of Justice guidelines, would the Department of Justice challenge the merger?

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Ques. 7

Roxie's Movie Theatre has a monopoly and discovers that at 12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table above reveals the results of the survey.
 
  Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of a showing a movie is 6. Roxie's charges ________ on weekdays and ________ on weekends. A) 9; 12
  B) 6; 15
  C) 6; 18
  D) 3; 12