Consumption depends on:
A. total income.
B. disposable income.
C. pre-tax income.
D. Consumption is unrelated to income.
B. disposable income.
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Ice Cream ConesTotal Utility150 280 395 495 Using Table 5-3, graph the marginal utility curve.
What will be an ideal response?
A prisoner's dilemma is a situation in which
a. a change in marginal cost may not lead to a change in price b. a firm's competitors follow a price increase but ignore a price decrease c. oligopolists behave irrationally d. oligopolists attempt to maximize sales rather than profits e. an oligopolists demand curve may become perfectly inelastic
As a fishing firm hires its first, second, and third workers, it could find that marginal product actually rises. The reason for this is:
a. diminishing returns have set in. b. the division of labor creates greater productivity. c. the firm has hired another boat. d. all tasks are shared by all workers. e. less qualified workers are becoming available.
Suppose the production function is given by Q = 3K + 4L. What is the average product of capital when 10 units of capital and 10 units of labor are employed?
A. 4 B. 3 C. 45 D. 7