Explain the equimarginal rule.
What will be an ideal response?
The equimarginal rule says to pick the combination of two activities where the marginal benefit per dollar for the first activity equals the marginal benefit per dollar for the second activity.
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The table below shows the weekly supply for hamburgers in a market where there are just three sellers.PriceSeller 1 Qs 1Seller 2 Qs 2Seller 3 Qs 3$5854464334322221If the price of a hamburger increases from $2 to $4, then the weekly market quantity of hamburgers supplied will
A. increase from 5 to 13. B. decrease from 9 to 5. C. decrease from 13 to 5. D. increase from 5 to 9.
Special interest group Q receives a 1/10,000th slice of the economic pie. Its net benefit from either an economic growth policy or a transfer policy is $50,000. In order for group Q to be indifferent between the two policies, the economic growth policy would have to make the size of the economic pie (Real GDP) grow by _________________. This type of analysis is used to show that special interest groups tend press government for ______________ instead of ________________.
A. $50,000,000; economic growth; transfers B. $500,000; transfers; economic growth C. $500,000,000; transfers; economic growth D. $5,000,000; transfers; economic growth E. none of the above
The costs and benefits of mercantilist policies on the colonies produced a ______ to the American colonies
a. small net benefit b. small net cost c. large net cost d. large net benefit
What is the source of the supply of loanable funds in the open-economy macroeconomic model?