The fact that Alice spends no money on travel:
A) implies that she does not derive any satisfaction from travel.
B) implies that she is at a corner solution.
C) implies that her MRS does not equal the price ratio.
D) any of the above are possible.
D
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Refer to Figure 4-1. What is the total amount that Kendra is willing to pay for 2 ice cream cones?
A) $1.50 B) $3.00 C) $5.50 D) $6.50
Microsoft is accused of which anticompetitive practice?
A. Interlocking directorates B. Illegal “bundling” of products C. Exclusive contracts D. Predatory pricing
In order to be successful in a market economy, entrepreneurs must
A) produce a good that consumers value less than the resources used to produce it. B) combine resources in a manner that increases their value. C) produce anything that consumers value, regardless of cost. D) use only personal financial capital so they can avoid interest payments on borrowed funds.
The division of labor and specialization explain
A) why the average product of labor falls when firms use more capital or change the layout of their businesses. B) why, when the marginal product of labor increases, so does the average product of labor. C) why the marginal product of labor rises as a firm hires its first units of labor. D) why firms may find it profitable to use more workers when the marginal product of labor is negative.