If Fred's marginal rate of substitution of salad for pizza equals five, then
A) he would give up five pizzas to get the next salad.
B) he would give up five salads to get the next pizza.
C) he will eat five times as much pizza as salad.
D) he will eat five times as much salad as pizza.
B
You might also like to view...
When there is a shift in autonomous expenditure, why is there a multiple expansion of income and real GDP? Trace the multiplier effect through the first four rounds when there is an increase in autonomous expenditure of $40 billion and the marginal propensity to consume is 0.75
A manufacturer produces 1,000 units, regardless of the market price. For this firm, the price elasticity of supply is
a. infinity. b. zero. c. one. d. negative one.
Dead Cap
What will be an ideal response?
Suppose a bakery produces donuts using the following: the ingenuity of the bakery owner, a deep-fryer, wheat (made into flour), and a baker. Which of them would be considered capital?
a. The ingenuity of the owner b. The baker c. The wheat d. The deep-fryer