Suppose There Are Ten People Playing Cards in a Room

question 100

Multiple Choice

Suppose there are ten people playing cards in a room.One of them wants to smoke a cigar;nine of them dislike the smell of cigar smoke.The smoker values the privilege of smoking at $5,and each of the other nine occupants of the room would be willing to pay fifty cents for clean air in the room.The rules governing use of the room state that smoking is not allowed unless everyone agrees to allow smoking.
Refer to the information given above.If the cigar smoker paid each other occupant fifty cents for the right to smoke,the cigar smoker would be ______ and the other occupants would be _______.

• A)better off;worse off
• B)better off;just as well off as before the payment
• C)better off;better off
• D)worse off;just as well off as before the payment

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Definitions:

Goods And Services

Products and activities that satisfy human wants directly or indirectly, capable of being sold in a market.

Worker's Time

The amount of time an individual dedicates to labor or employment activities.

Constant Returns

A situation in production where increasing the quantity of inputs results in a proportional increase in the quantity of outputs, indicating a stable relationship between inputs and outputs.

Scale

refers to the size of a business operation or the capacity of a company's production output.