Define utility. What are individual units of utility called?
What will be an ideal response?
Utility is the measure of satisfaction or well-being. Individual units of utility are referred to as utils.
You might also like to view...
There are currently 1,000 firms in a competitive industry. Minimum long-run average cost is $80 and price $100 . Explain what will happen to price, profit, and the number of firms in this industry over time
A country can gain by importing a good that it can make itself if
a. this enables the country to make another good in which it is extremely efficient. b. it has an absolute disadvantage in the good. c. this permits the country to establish comparative advantage in the good. d. All of the above are correct.
Suppose that elementary education creates a positive externality. If the government subsidizes education by an amount equal to the per-unit externality it creates, then
a. the equilibrium quantity of education will equal the socially optimal quantity of education. b. the equilibrium quantity of education will be greater than the socially optimal quantity of education. c. the equilibrium quantity of education will be less than the socially optimal quantity of education. d. There is not enough information to answer the question.
Suppose that when the price of pickles decreases, Teddy increases his purchase of ketchup. To Teddy,
A) pickles and ketchup are complements. B) pickles and ketchup and substitutes. C) pickles and ketchup are normal goods. D) pickles are a normal good and ketchup is an inferior good.