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To avoid harm to society, the government often becomes the supplier of a good or service when the respective market:

Tariq is a market researcher for Mattel, the toy company. From his research, he concludes (a) that at a price of $20.99, Mattel will sell 400,000 20-car Hot Wheel packs this year, (b) that sales at this level will be inadequate to meet Mattel’s revenue goals for this product, and (c) that a different pricing strategy would increase sales and lead to revenues that meet Mattel’s revenue target. (a) reflects _____ analysis; (b) reflects _____ analysis; and (c) reflects _____ analysis.

To get maximum output in your business, you should allocate each task to the person who:

_____ determines the amount of economic surplus; _____ determines whether buyers or sellers get the surplus.

(Figure: Producer Surplus in the Market for Baseballs) Consider the figure Producer Surplus in the Market for Baseballs. At a price of P2, the producer surplus equals the area:

A company might set up an internal market to:

(Table: Joachim and Zane’s Opportunity Cost) The table provides data on how long it takes Joachim and Zane to clean the bathrooms and wash the windows at a home. Joachim’s opportunity cost for cleaning bathrooms is _____, and Zane’s opportunity cost for cleaning bathrooms is _____.   Hours it takes to: Clean the bathrooms Wash the windows Joachim 4 10 Zane 3 6                            

The government imposes a “caffeine tax” on all caffeinated soft drinks to address the problem of caffeine addiction. Who is likely to carry most of the economic burden of the tax?

Mila is a dentist who employs an assistant, John. If Mila worked all day at the front desk, she could answer 40 emails. If she worked all day with patients, she could clean the teeth of 40 patients. If John worked all day at the front desk, he could answer 60 emails. If he worked all day with patients, he could clean the teeth of 20 patients. _____ has a(n) _____ advantage in _____.

Every year, you and your friend disagree on who will win the Superbowl. Which source of information would have the BEST track record predicting the winners?