Jeff and Roel like to eat pizza twice a week, burritos once a week, and steak four days a week. This variety of dinner choices illustrates the concept of:
A. unstable preferences.
B. income maximization.
C. negative marginal utility.
D. diminishing marginal utility.
Answer: D
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Refer to Figure 15-10. Compared to a perfectly competitive market, consumer surplus is lower in a monopoly by an amount equal to the
A) area FGE. B) area FHE. C) area P1P2EF. D) area P1P2GF.
When the federal reserve sells bonds as a part of a contractionary monetary policy, there is:
A. A decrease in the money supply and a decrease in interest rate B. A decrease in the money supply and an increase in interest rate C. An increase in the money supply and a decrease in interest rate
Suppose the equilibrium price in the market is $200 and the marginal revenue associated with the linear (inverse) demand function is ?$200. Then we know that the own price elasticity of demand is:
A. ?1. B. ?0.5. C. 2. D. It cannot be determined from the information contained in the question.
What are explicit cost and implicit cost?
What will be an ideal response?