The fact that rubies are more expensive than milk reflects the fact that for most consumers
A) the total utility from rubies exceeds that from milk.
B) the marginal utility from rubies equals that from milk.
C) more milk is consumed than rubies.
D) a quart of rubies is considered to be prettier than a quart of milk.
C
You might also like to view...
The stock of wealth increases more rapidly the faster the flow of ________.
A. saving B. money C. income D. assets
Index funds
a. buy all the stocks in a given stock index. b. promise to beat the market by a certain percentage known as an index. c. provide a return that is adjusted for changes in the consumer price index. d. buy industries within a particular category of the North American Industry Classification System.
The double taxation of corporate profit in the United States refers to the fact that
A) tax rates on partnerships are very high. B) depreciation is not a deductible expense. C) corporate profit is first taxed and then any dividends paid are subject to personal income tax. D) proprietorships are not subject to any tax on earnings.
It has been argued that a monopolistically competitive industry involves "waste" because
A. they end up producing to the right of the minimum of the average total cost curve and the price is below the marginal cost. B. the firms do not equate marginal cost to marginal revenue to find the profit maximizing price and output. C. there is too much product differentiation making shelves too crowded. D. the firms do not produce at the minimum of the average total cost curve and price is above marginal cost.