Explain the three characteristics of utility
Please provide the best answer for the statement.
The three characteristics of utility are (1) Utility and usefulness are not synonymous. While a good or service may bring you satisfaction, it may be useless functionally. (2) Utility is subjective. The utility of a given good or service varies across individuals. (3)Utility is difficult to quantify. Numerical comparisons of goods and services are difficult to measure.
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The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the producer surplus?
A) area A B) area B C) area C D) area D E) area E
If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will
A) decrease its total product. B) decrease its average product of labor. C) increase its marginal product of labor. D) not change its average product of labor.
The demand for a movie ticket is probably ________ than is the demand for a Broadway show ticket because ________.
A. less price elastic; a movie ticket has fewer available substitutes. B. more price elastic; a movie ticket requires a smaller portion of one's income. C. more price elastic; a movie ticket has fewer available substitutes. D. less price elastic; a movie ticket requires a smaller portion of one's income.
In order to minimize losses in the short run, a perfectly competitive firm should shut down if
A. total revenue is less than total cost. B. total revenue is less than the difference between total fixed cost and total variable cost. C. total revenue is less than total variable cost. D. total revenue is less than total fixed cost.