If Anne receives more satisfaction as she consumes more shoes, then:
A. the marginal utility of shoes is positive.
B. the marginal utility of shoes is negative.
C. the marginal utility of shoes is constant.
D. the marginal utility of shoes is zero.
A. the marginal utility of shoes is positive.
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The increase in spending that occurs because domestic goods become cheaper relative to foreign goods when the price level falls is known as the
A) interest rate effect. B) price effect. C) international trade effect. D) wealth effect.
Government plays a role in which type of economy?
a. only free market economies like the United States b. only socialist economies c. only mixed economies d. all economies
Which statement is true?
A. The monopolistic competitor breaks even in the long run. B. The monopolistic competitor operates at an output that is less than peak efficiency. C. The monopolistic competitor has a small influence on price because its products are differentiated. D. All of the choices are true.
Suppose that Figure 10.5 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, the consumer surplus would be:
A. $2,450. B. $1,225. C. $612.50. D. $262.50.