When the marginal utility per dollar of good A exceeds the marginal utility per dollar of good B,
A. good B must have a negative marginal utility.
B. the consumer is consuming too much of good A.
C. the consumer is in an optimal situation if the price of good A exceeds the price of good B.
D. the consumer should consume more of good A.
Answer: D
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For the monopoly shown in the figure above, when it maximizes its profit the marginal cost is ________ per unit and the price is ________ per unit
A) $10; $30 B) $20; $20 C) $10; $20 D) $30; $20.
In debating whether drug companies have high rates of return or moderate rates of return, economists favoring the drug industry's point of view are that those opposing it overlook one key factor that, if you ignore, leads to an overstated rate of return. It is the
A. opportunity cost of the money invested in the invention and testing of the drug. B. costs of invention. C. marketing costs. D. costs of testing.
Rent control
a. is an example of a price ceiling. b. leads to a larger shortage of apartments in the long run than in the short run. c. leads to lower rents and, in the long run, to lower-quality housing. d. All of the above are correct.
Economists disagree about exactly what causes recessions; there is general agreement, however, on one of the following factors as a major part of any adequate explanation:
What will be an ideal response?