People maximize utility when they make the choices that provide the highest level of satisfaction
a. True
b. False
Indicate whether the statement is true or false
True
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Alan purchases 10 percent fewer bags of chips when his income decreases by 5 percent. Based on only this information, we know that for Alan
A) chips are a normal good. B) chips are a complement to salsa. C) chips are a substitute for pretzels. D) chips are an inferior good. E) the price of chips fell.
Imagine a duopoly in which two firms, A and B, produce the monopoly profit-maximizing output and equally share the economic profit
If firm A increases its output, the market price ________ and total economic profit of the two firms combined ________. A) falls; decreases B) falls; increases C) rises; decreases D) rises; increases E) falls; does not change
What is the money multiplier and what affects its size?
What will be an ideal response?
Explain what a "perfectly contestable" market means. Give an example of a perfectly contestable market. Explain why the outcome in a perfectly contestable market is that firms produce efficiently
What will be an ideal response?