The law of diminishing marginal utility implies that
A. supply curves always slope upward and to the right.
B. a consumer will always buy positive amounts of all goods.
C. demand curves always slope downward and to the right.
D. total utility will always increase by an increasing amount as consumption increases.
Answer: C
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Two competing firms in a duopoly must decide whether or not to offer consumers a coupon for their good. The payoff matrix above represents the daily profit available to the firms under the different coupon strategies
a. What strategies and payoffs are represented by quadrant A? b. What strategy will Firm 1 pursue if it believes that Firm 2 is offering a coupon? c. What quadrant represents the equilibrium that will result if the firms act independently (compete)? d. What quadrant represents the equilibrium that will result if the firms successfully collude?
The concept of economic rent is associated with the British economist David Ricardo (1772-1823). Ricardo analyzed economic rent for land. Which of the following is FALSE with respect to determining land rent?
A) The supply curve for land is vertical (perfectly inelastic). B) Rent is payment for a resource above its opportunity cost. C) Payment for a resource below its opportunity cost is rent. D) Ricardo assumed the quantity of land in a country is fixed.
The highest quintile of households in the income distribution:
A. receives about 51 percent of the total income. B. is comprised of 10 percent of all households. C. is comprised of 5 percent of all households. D. receives about 43 percent of the total income.
The intersection of the x axis and the y axis is called the
A. "zero" point. B. "meeting point." C. origin. D. corresponding point.