An optimizing consumer has to choose between two goods–Good A priced at PA and Good B priced at PB
Given that MBA is the marginal benefit from consuming Good A and MBB is the marginal benefit from consuming Good B, the consumer's well-being will be maximized at the point where: A) MBA = MBB.
B) MBA/PB=MBB/PA.
C) MBA/PA = MBB/PB.
D) MBA = MBB/PB.
C
You might also like to view...
When the Fed wants to decrease US interest rates it will buy US treasury bonds
a. true b. false
Which of the following is an impact of tariffs on the country imposing them?
A. The domestic producers of import-competing products are forced to charge a lower price for their products to retain market share. B. The domestic consumers pay a higher price for the imported products. C. The supply of the domestic import-competing products declines. D. The demand for the imported goods by the domestic consumers increases.
"Stocks and bonds" are collectively known as
A. shares. B. real property. C. equities. D. securities.
A partnership is ________ type of business
A) the most common B) the least common C) the least risky D) the most profitable