When a consumer maximizes utility subject to a limited income, she allocates income across goods to the point that:
a. the marginal price is the same for all goods
b. marginal utility is zero.
c. marginal utility is negative.
d. the marginal utility per dollar spent is the same for all goods.
d
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According to the graph above, the expansion that began in December 1914 had a duration of ________
A) 51 months B) 4 years C) 3 years D) 44 months E) 20 months
If goods A and B are complements, and if the price of good B rises, how will this affect the market equilibrium for good A?
a. Price will rise and quantity will fall. b. Price will fall and quantity will rise. c. Price and quantity will both rise. d. Price and quantity will both fall.
Refer to Figure 3.2, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, what is the market quantity supplied at a price of $30?
A. 200 B. 250 C. 300 D. 350
If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm
A) is earning a profit. B) should shut down. C) is incurring a loss. D) is breaking even.