The consumer is in equilibrium when
A) MRT = MRS.
B) Px/Py=MUx/MUy
C) the budget line is tangent to the indifference curve at the bundle chosen.
D) All of the above.
D
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If the four-firm concentration ratio is a very small number, then
A) there is a high degree of competition in the market. B) there is no competition in the market. C) the market must be dominated by a few firms. D) the market is not perfectly competitive.
Which type of businesses earns the majority of profits in the United States?
A) corporations B) sole proprietorships C) partnerships D) none of these
Some people view cosmetic surgery (c) and facials (f) as perfect substitutes as measured by the utility function U(c,f) = 5c + 10f. What is the marginal utility of cosmetic surgery?
A) MU = 5. B) MU = 10. C) MU = 15. D) None of the above.
In the long-run equilibrium for a monopolistically competitive firm, price:
A. exceeds marginal cost. B. is equal to marginal revenue. C. is equal to marginal cost. D. exceeds average total cost.