Which of the following statements is correct?
A. The “law” of diminishing marginal utility implies that demand curves slope upward and to the right.
B. If the price of a good falls, the utility-maximizing consumer will assure that marginal utility rises.
C. If the price of a good falls, the consumer will purchase more of the good in order to maximize total utility.
D. MU and demand have different underlying consumer behavior assumptions.
Answer: C
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Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good
Indicate whether the statement is true or false
In a market, competitive forces guarantee that any price other than the equilibrium price is:
a. market-clearing. b. stable c. temporary. d. unaffordable.
When a manager's bonuses are tied to multiple unrelated performance measures
a. we typically see the manager miss all goals by about the same amount
b. we typically see the manager greatly exceeding some goals while missing others altogether
c. we typically see the manager just meeting some goals while missing others by a wide margin
d. we typically see the manager indifferent to the goals
The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. 
An industry spy comes to firm B and claims to know what firm A has decided. Given that each firm already knows the payoff matrix, how much would this information be worth to firm B?
A. $30 million. B. $0. C. $70 million. D. $50 million.