Beginning at the vertical axis intercept, as a consumer moves down the budget line, she will find that
a. the marginal utility per dollar spent on the vertical axis good decreases
b. the marginal utility per dollar spent on the vertical axis good increases
c. the marginal utility per dollar spent on the horizontal axis good increases
d. the marginal utilities per dollar spent on both goods increase
e. the marginal utilities per dollar spent on both goods remain constant along that particular budget line
B
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The short-run aggregate supply curve has a(n) ________ slope because as prices of ________ rise, prices of ________ rise more slowly
A) infinite; inputs; final goods and services B) positive; final goods and services; inputs C) infinite; final goods and services; inputs D) positive; inputs; final goods and services
If antitrust legislation is successful, then the monopolistic firm will
A) decrease output and charge a lower price than before. B) increase output and charge a higher price than before. C) increase output and charge a lower price than before. D) decrease output and charge a higher price than before.
The earnings that a corporation saves for investment in other productive activities are
A. transfers in kind. B. capital gains. C. tax incidence. D. retained earnings.
If a "certificate of convenience and public necessity" protects a monopolist's position, the barrier to entry this firm relies on is called
A) a tariff. B) a government license. C) a patent. D) economies of scale.