A monopoly price reflects a good's marginal utility
a. True
b. False
Indicate whether the statement is true or false
False
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The differences between a competitive market and a monopoly include all of these except
A. excess profits would be competed away in a competitive market, but persist in a monopolistic market. B. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise short term prices. C. a competitive market’s cost curves will shift with the market, while a monopoly’s cost curves will remain stable. D. a competitive market would work toward production of the quantity consumers seek, while a monopolistic market may restrict output to raise long term prices.
Economists generally assume that ____ economic growth is better for society
a. slower b. faster c. stable d. declining
Exhibit 6-2 Total utility for hamburgers, fries, and Cokes Total Utilityfrom Hamburgers Total Utilityfrom Fries Total Utilityfrom Cokes 1 hamburger (100 utils) 1 order of fries (30 utils) 1 Coke (40 utils) 2 hamburgers (180 utils) 2 orders of fries (50 utils) 2 Cokes (60 utils) 3 hamburgers (240 utils) 3 orders of fries (60 utils) 3 Cokes (70 utils) In Exhibit 6-2, assume that the price of hamburgers is $2 each, fries cost 50 cents each, and Cokes cost $1 each. Suppose the consumer has $6 to spend on hamburgers, fries, and Cokes. Which of the following meals gives the consumer the most utility?
A. 3 hamburgers, no fries, and no Cokes. B. 2 hamburgers, no fries, and 2 Cokes. C. 2 hamburgers, 2 orders of fries and 1 Coke. D. 1 hamburger, 2 orders of fries, and 3 Cokes.
Suppose that everyone is risk neutral and buyers cannot identify the lemons. The expected value of a used car is $8,000. No good cars will be sold in this market
A) unless the sellers of good cars place a value greater than $8,000 on their cars. B) unless the sellers of lemons place a value greater than $8,000 on their cars. C) unless sellers engage in cheap talk. D) unless the sellers of good cars place a value lesser or equal to $8,000 on their cars.