The state of consumer optimum is reached when the consumer's
A) total utility/marginal utility ratio for all items is equal.
B) total utility/price ratio for all items is equal.
C) marginal utility for a product is zero.
D) marginal utility/price ratios for all items are equal.
Answer: D
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A. normative B. structural C. fiscal D. monetary
Assuming demand is inelastic, if a firm wants to increase its total revenue, it should raise price
Indicate whether the statement is true or false
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a. the rate of capital depreciation increased. b. the labor force decreased. c. the price level grew. d. All of the above would increase potential GDP.
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