If you are willing to pay no more than $4 for a slice of pizza and the price of a slice of pizza is $4, then
A) if you buy it, you would be cheated because you would realize no total benefit from the purchase.
B) you buy it but you get no marginal benefit from the purchase.
C) you will not buy it.
D) you buy it but you get no consumer surplus from the purchase.
E) you might buy it depending on how the slice's marginal benefit compares to its price.
D
You might also like to view...
Higher production indifference curves correspond to larger amounts of one input in relation to a second input.
Answer the following statement true (T) or false (F)
Suppose the marginal product of labor is MPN = 200 - 0.5N
where N is aggregate employment. The aggregate quantity of labor supplied is 100 + 4w, where w is the real wage. The government imposes a minimum wage of 60. What is the quantity of employment? A) 240 B) 260 C) 280 D) 300
Suppose the price level falls. The result is that the:
a. aggregate supply curve would shift to the right. b. aggregate supply curve would shift to the left. c. general price level would rise causing a movement up the aggregate demand curve. d. aggregate demand curve would slope downward because of the real balances effect.
In many cases, it is reasonable to refer to the ________________ as the price.
a. budget constraint b. sunk cost c. opportunity cost d. budget constraint