Initially, a consumer is at an optimum. Then the price of Y increases. Consequently
A) MUX/PX < MUY/PY.
B) MUX/PX > MUY/PY.
C) MUX/PX = MUY/PY.
D) MUX > MUY.
Answer: B
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A. Price increases and quantity is indeterminate. B. Quantity increases and price is indeterminate. C. Price decreases and quantity is indeterminate D. Quantity decreases and price is indeterminate.
Economies of scale are created by greater efficiency of capital and by
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