Figure 7.3
The price of Video Game rentals is $2 For MUA/$ and $4 for MUB/$.The price of Energy Drinks is $2.Budget = $28.Refer to Figure 7.3. If the price of video game rentals drops from $4 to $2, the utility maximizing combination is ________ video game rentals and ________ energy drinks.
A. 1; 4
B. 2; 10
C. 10; 4
D. 11; 10
Answer: C
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Use the above figure. The total revenue earned by the monopolistically competitive firm is
A) $300. B) $285. C) $180. D) $255.
During the Great Depression of the 1930s, the aggregate demand curve intersected the aggregate supply curve in the:
a. horizontal portion of the aggregate supply curve. b. upward-sloping part of the aggregate supply curve. c. vertical portion of the aggregate supply curve. d. early years in the horizontal portion, but in the later years in the vertical portion. e. early years in the vertical portion, but in the later years in the horizontal portion.
Before the breakup of AT&T several years ago, profits on long-distance calls offset losses on basic residential service. This practice is known as
A. abuse of monopolistic power. B. cream skimming. C. cross-subsidization. D. the Ramsey rule.
When the interest rate rises, people are:
A. more likely to borrow, that is, sell a financial asset. B. less likely to borrow, that is, purchase a financial asset. C. less likely to borrow, that is, sell a financial asset. D. more likely to borrow, that is, purchase a financial asset.