You would be inclined to bid on a good at an auction if
a. its MU/P was higher than those for other goods you consume
b. its MU/P was lower than those for other goods you consume
c. the consumer surplus was less than its price
d. the consumer surplus was greater than the marginal utility from consuming the good
e. the marginal utility was higher than its price
a. its MU/P was higher than those for other goods you consume
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A firm will tend to select the least costly input combination to produce its output.
Answer the following statement true (T) or false (F)
If major traders believe the price of a stock should be higher than its current market price,
A) they have an incentive to sell the stock. B) their actions will result in the information they possess being incorporated into the price of the stock. C) there is little they can do because government regulation precludes their acting on what they know. D) they should petition the Securities and Exchange Commission to authorize an adjustment in the price of the stock.
The figure above shows cost curves for a perfectly competitive firm. A profit-maximizing firm will break even when market price is:
A. $1.50 B. $0.60 C. $0.80 D. $1.60
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.