Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. If the price of a magazine is $5 and the price of a chocolate bar is $2
50, which of the following combinations maximizes Sonya's utility? A) 1 magazine and 18 chocolate bars
B) 2 magazines and 20 chocolate bars
C) 3 magazines and 14 chocolate bars
D) 5 magazines and 10 chocolate bars
C
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Once a product becomes established, network externalities may create ________ costs that make consumers reluctant to buy a new product with better technology
A) switching B) marginal C) external D) implicit
If those accused of antitrust violations sign a consent decree, they have
a. agreed to stop doing what they are accused of doing b. admitted to guilt c. agreed to a court trial d. contested the charges against them e. charged the government with wrongdoing
Assume that the U.S. interest rate is 5%, the European interest rate is 2%, and the future expected exchange rate in one year is $1.224. At approximately what exchange rate will the returns between the United States and Europe be equalized?
a. $1.20 b. $1.224 c. $1.188 d. $1.98
The normal functioning of the market for energy will naturally lead to conservation as energy prices rise. Despite this fact, the government may still want to intervene in energy use. Which of the following is NOT a reason why the government may get involved in energy conservation policies?
A. To accelerate the development of new energy technologies B. To correct for the short-sightedness of individuals C. To generate government tax revenue D. To reduce the negative externalities associated with energy use