The diamond-water paradox is an example that shows that
A) necessities like water should have a higher price.
B) marginal utility rather than total utility determines what people are willing to pay for a good.
C) there are exceptions to the law of diminishing marginal utility.
D) marginal utility can initially increase and then decrease.
Answer: B
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If the aggregate supply curve is upward sloping, then an increase in autonomous consumption leads to a(n)
A) increase in aggregate demand and a rise in the price level. B) decrease in aggregate demand and a rise in the price level. C) decrease in aggregate demand and a fall in the price level. D) no change in aggregate demand and no change in the price level.
For an incumbent, investing in plant and equipment that reduces marginal cost while raising total cost makes sense if
A) the incumbent's profit fro, producing the entry-deterring level of output after making the investment exceeds the profit the firm would earn if it didn't make the investment and entry occurred B) the incumbent's profit from producing the entry-deterring level of output after making the investment is positive C) the potential entrant cannot enter the market profitably after the incumbent makes the investment and produces the entry-deterring level of output D) the potential entrant would not enter the market anyway
There are two sets of x, y points on a straight line in a two-variable graph with y on the vertical axis and x on the horizontal axis. What would be the linear equation for the line if one set of points was (0, 9) and the other set was (13, 61)?
Please provide the best answer for the statement.
A. It can be concluded that the demand for the product is elastic. B. It can be concluded that the supply of the product is elastic. C. It can be concluded that the supply of the product is inelastic. D. No conclusion can be reached with respect
to the elasticity of supply. A. perfectly elastic in the long run because consumer demand will have sufficient time to adjust fully to changes in supply. B. more elastic in the long run because there is time for firms to enter or leave the industry. C. perfectly inelastic in the long run because the law of scarcity imposes absolute limits on production. D. less elastic in the long run because there is time for firms to enter or leave an industry.