Whether or not people have identical tastes, the net value that the marginal user receives from a common property is
a. positive.
b. zero.
c. negative.
d. uncertain.
b. zero.
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When does a monopolistic competitor earn positive economic profits in the short run?
What will be an ideal response?
The local mall has a make-your-own sundae shop. They charge customers 35 cents for each fresh fruit topping and 25 cents for each processed topping. Barbara is going to make herself a sundae
The total utility that she receives from each quantity of topping is given by the following table: Fresh Fruit Topping Processed Topping # of Units Total Utility # of Units Total Utility 1 10 1 10 2 18 2 20 3 24 3 10 4 28 4 0 5 30 5 -10 6 28 6 -20 7 24 7 -30 8 18 8 -40 9 10 9 -50 10 -6 10 -60 a. What is the marginal utility of the 6th fresh fruit topping? b. Of the two toppings, which would Barbara purchase first? Explain. c. If Barbara has $1.55 to spend on her sundae, how many fresh fruit toppings and processed toppings will she purchase to maximize utility? d. If money is no object, how many fresh fruit toppings and processed toppings will Barbara purchase to maximize utility? e. Which of the basic assumptions of preferences are violated by preferences shown in the table above?
The marginal cost curve intersects the average total cost curve when average variable costs are:
A. at a minimum. B. falling. C. at a maximum. D. rising.
Putting money into mental categories can:
A. help people organize their expenditures. B. cause irrational behavior. C. cause people to take risks they wouldn't otherwise take. D. All of these are true.