When you chose to buy the second cup of coffee instead of the third bagel, which of the following is necessarily CORRECT?
A) The second coffee will give you higher marginal utility.
B) The second coffee is cheaper than the third bagel.
C) The marginal utility per dollar from the third bagel is less than the marginal utility per dollar from the second coffee.
D) Both answers A and C are correct.
C
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If price is above average total costs, the firm
A) is earning positive profits. B) is earning negative profits. C) is making a normal rate of return on its capital investment. D) may be earning a positive or negative profit depending upon costs.
Which statement(s) are most likely correct about supply?
a. A rise in price almost always leads to an increase in the quantity supplied of that good. b. A rise in price almost always leads to a decrease in the quantity supplied of that good. c. A fall in price almost always lead to an increase the quantity supplied. d. A rise in price almost always leader to an increase in the quantity demanded of that good.
The measure for the actual rate of inflation used in the Taylor rule is the:
A. producer price index. B. consumer price index. C. GDP deflator. D. personal consumption expenditure index.
If a competitive firm is in short-run equilibrium, then:
A. marginal revenue is equal to marginal cost. B. price is greater than marginal cost. C. price is equal to average variable cost. D. price is greater than marginal revenue.