A consumer increases their consumption from 2 to 4 units of a product.. As it does its total utility rises from 10 to 16 utils. The consumers marginal utility is:
a) 6 utils.
b) 2 utils.
c) 3 utils.
d) 4 utils.
Answer: c) 3 utils.
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Which of the following is the best example of opportunity cost?
A) a company's expenditures on a training program for its employees B) the rate of return on a company's investment C) the amount of money that a company can earn by depositing excess funds in a money market fund D) the profit that a company forgoes when it decides to drop one product line in favor of another one
The difference in wages paid to major-league baseball players and minor-league baseball players is most likely due to
a. differences in chance. b. differences in natural ability. c. the fact that the players' union is strong. d. a compensating differential.
Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
A. constant. B. falling. C. rising. D. subject to diminishing returns.
The price elasticity of supply is the:
A. change in the price divided by the change in the quantity supplied. B. change in the quantity supplied divided by the change in price. C. percentage change in the price divided by the percentage change in the quantity supplied. D. percentage change in the quantity supplied divided by the percentage change in price.