A consumer is at an optimum when the price of one good she has been consuming decreases. As a result
A) the value of the marginal utility of the last unit consumed has increased.
B) the value of the marginal utility of the last unit consumed has decreased.
C) the price of the other good must decrease too.
D) the marginal utility of the last dollar spent on this good is now greater than the marginal utility of the last dollar spent on other goods.
Answer: D
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A public good will:
a. be efficiently provided by the free market as long as its total benefits exceed its total costs. b. be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs. c. be provided in less than efficient quantities by the free market. d. be provided in efficient quantities by voluntary contributions. e. not be provided by the government.
If Howard takes out a $400 loan for one year at 5 percent interest annually, he will pay back a total of:
A. $400. B. $440. C. $420. D. $20.
Which of the following is a characteristic of "public goods"?
A) They must be provided by the government. B) It is difficult to restrict their availability to paying customers. C) It is easy to establish a one-to-one link between consumption of and payment for these goods. D) Scarce resources are not required for their production.
Firms in an oligopoly market tend to be ____ and have ____ barriers to entry.
a. large (relative to the total market); high.
b. large (relative to the total market); low.
c. small (relative to the total market); high.
d. small (relative to the total market); low