Economists assume that individuals consume products to:
a. minimize cost.
b. maximize total utility.
c. maximize consumption.
d. minimize marginal utility.
b
You might also like to view...
Assume a firm is able to use an optimal two-part tariff
a. Is the outcome economically efficient? Why or why not? b. What happens to consumer surplus? c. Does this represent perfect price discrimination? Why or why not? What will be an ideal response?
Among the evidence that people do not always make choices that reflect sensible preferences are examples of:
A. choice reversals. B. conformance to the principle of revealed preference. C. compliance with the Ranking Principle. D. All of these provide evidence that people do not always make choices that reflect sensible preferences.
If there is a sudden jump in the inflation rate, the purchasing power of financial assets will immediately fall
a. True b. False Indicate whether the statement is true or false
The exchange rate between yen and dollars at one point in 2010 was 83 yen per dollar. If a Big Mac, fries, and a Coke cost $3.91 in San Francisco, how much should the same order cost in yen in Osaka?
a. 0.03 b. 325 c. 392 d. 422