Kim has $24 per week in her entertainment budget. She splits her time between going to the movies and yoga classes. Each movie costs $8 while each yoga class $3. The total utility from each of these activities is set out in the table below. What is Kim's total utility maximizing point?
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A. 2 movies, 2 yoga classes
B. 1 movie, 5 yoga classes
C. 3 movies, 0 yoga classes
D. 0 movies, 8 yoga classes
Answer: B. 1 movie, 5 yoga classes
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A) the inflation rate; the nominal interest rate B) the unemployment rate; real GDP C) potential GDP; the natural unemployment rate D) the inflation rate; the unemployment rate E) the natural inflation rate; the unemployment rate
A firm wanting to maximize profits should operate in such a way that
A) the MRP of each input is equal to or greater than its MFC. B) MRP equal MFC in the input market but MC must exceed MR in the output market. C) marginal revenue must be equal to the marginal revenue product. D) none of the above.
If a competitive firm is selling 900 units of its product at a price of $10 per unit and earning a positive profit, then
a. its total cost is more than $9,000. b. its marginal revenue is less than $10. c. its average total cost is less than $10. d. the firm cannot be a competitive firm because competitive firms cannot earn positive profits.
The slope of an iso-revenue line is determined by
A) The ratio of the product to the level of output. B) The ratio of the price of the two products. C) The ratio of output to the price of the product. D) None of the above