See Scenario 4.1. What is Daniel's budget constraint?
A) 240 = 3Pc + 3Pd
B) 240 = 3Qc + 3Qd
C) 240 = (Pc)(Qc)
D) 240 = (Qc)(Qd)
E) none of the above
B
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In the long-run equilibrium, perfectly competitive firms produce where
A) marginal cost is minimized. B) average total cost is minimized. C) average revenue is zero. D) All of the above are correct.
Refer to Table 4-11. The equations above describe the demand and supply for Chef Ernie's Sushi-on-a-Stick. The equilibrium price and quantity for Chef Ernie's sushi are $60 and 20 thousand units. What is the value of consumer surplus?
A) $100 thousand B) $200 thousand C) $600 thousand D) $800 thousand
Suppose that you're the manager of a firm. You notice that when you raised your price from $10 to $11, sales fell from 500 to 400. Should you raise your price more?
What will be an ideal response?
The idea that consumers continue to adjust their purchases until the marginal utility per last dollar spent on all items is equal is called the
A) law of increasing costs. B) law of diminishing marginal utility. C) rule of 72. D) consumer optimum.