The figure above shows an education market in which the government is providing households with vouchers. What is the efficient quantity of students?
A) 2 million
B) 4 million
C) 6 million
D) more than 6 million
E) more than 4 million and less than 6 million
C
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Measuring "y" on the vertical axis and "x" on the horizontal axis, convexity of indifference curves implies that the MRS of "y" for "x"
A) is decreasing as "x" increases. B) is increasing as "x" increases. C) is constant as "x" increases. D) cannot be calculated for large levels of "x".
If one defines incremental cost as the change in total cost resulting from a decision, and incremental revenue as the change in total revenue resulting from a decision, any business decision is profitable if:
a. it increases revenue more than costs or reduces costs more than revenue b. it decreases some costs more than it increases others (assuming revenues remain constant) c. it increases some revenues more than it decreases others (assuming costs remain constant) d. all of the above e. b and c only
On which of the following assets are you most likely to earn interest income?
a. cash and currency b. checkable deposits c. money market deposit accounts d. gold and other precious metals e. All of the above are correct.
Suppose that an industry contains 4 firms with the following market shares: 50%, 25%, 15%, 10%. What is the value of the Herfindahl-Hirschman Index for this industry?
What will be an ideal response?