The invisible hand principle indicates that when individuals are directed by prices determined in competitive markets, their actions will tend to promote the efficient use of resources
What will be an ideal response?
even when each market participant cares only about their own self interest rather than the overall efficiency of resource use.
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Refer to Table 11-6. Alicia Gregory owns a foot massage business. She leases 4 computer-controlled massage booths, for which she pays $125 per day. She cannot increase the number machines she leases without giving the manufacturer 3 months notice
She can hire as many workers as she wants at a cost of $75 per day per worker. These are the only two inputs she uses in her business. Use this information to fill in the columns in the above table.
At any given time,
a. planned investment equals planned saving. b. planned investment equals actual investment. c. planned saving equals actual saving. d. actual investment equals actual saving.
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400 The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $100. B. $1,400. C. $1,000. D. $400.
If marginal utility is zero
A. a rational consumer will not consume additional units. B. a rational consumer will consume more units next time. C. a rational consumer will consume more units if the price is zero. D. a rational consumer will consume fewer units next time.