Oscar consumes only two goods, X and Y. Assume that Oscar is not at a corner solution, but he is maximizing utility. Which of the following is NOT necessarily true?
A) MRSxy = Px/Py.
B) MUx/MUy = Px/Py.
C) Px/Py = money income.
D) Px/Py = slope of the indifference curve at the optimal choice.
E) MUx/Px = MUy/Py.
C
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Which of the following is true?
A) The income per worker of a country is higher than its income per capita. B) The income per worker of a country increases when the amount of capital available in the country diminishes. C) The income per worker of a country is lower than its income per capita. D) The income per capita of a country increases when there is an increase in the number of workers.
The goal of a seller is primarily to:
A) maximize sales. B) maximize profits. C) minimize costs. D) minimize consumer surplus.
A purely competitive firm is faced with a marginal revenue curve that lies everywhere below the average variable cost curve. Would this firm be able to operate in the short run? Explain
What will be an ideal response?
As a firm expands into overseas markets, information problems and the complexity of operating within many varied cultures and economies may result in
a. constant returns to scale b. diminishing marginal returns c. declining long-run marginal cost d. diseconomies of scale e. economies of scale