Suppose a consumer is spending all of his/her income on two goods, A and B, in a manner where MUa = 15 and MUb = 75, and the Pa = $3 and the Pb = $15, then the consumer:
a. is maximizing his/her utility.
b. should increase his/her purchases of B and decrease the purchases of A.
c. should spend more money on both goods.
d. should spend less money on both goods.
e. should increase the purchases of A and decrease the purchases of B.
a
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Refer to the table above. What is the market demand for wine when the price is $3?
A) 50 units B) 35 units C) 66 units D) 28 units
A firm maximizes its profit by producing the amount of output such that
A) marginal revenue equals marginal cost. B) marginal revenue exceeds marginal cost by some amount. C) marginal revenue is maximized. D) marginal cost is minimized. E) marginal revenue exceeds marginal cost by the maximum amount possible.
An increase in the interest rate causes a decrease in the future value of $1,000 that you have in a bank account today
a. True b. False Indicate whether the statement is true or false
An “optimally imperfect” decision is one that
A. is vaguely right instead of precisely wrong. B. recognizes that the decision could always be better if given more time. C. recognizes that the cost of additional information probably exceeds the potential gain from making a better decision. D. recognizes that any decision is imperfect because humans have limited intellectual capacities.