The marginal rate of substitution is the
A. rate at which the consumer increases utility.
B. absolute value of the indifference curve.
C. tradeoff rate between the two goods under consideration at any particular point.
D. total utility derived at any point.
Answer: C
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Real per capital GDP in the United States is:
A. over three times what it was a century ago. B. over seven times what it was a century ago. C. over 30 times what it was a century ago. D. about the same as it was a century ago.
A welfare loss occurs when a monopolist chooses not to produce units of output that are of greater marginal value to consumers than the marginal cost of producing them
a. True b. False Indicate whether the statement is true or false
An oligopolist's effective demand curve will be kinked if the firm
a. is acting as a price leader in the industry. b. expects other firms to match price cuts but not price increases. c. expects other firms to match all price changes. d. fears new entry into the industry.
As you move down the production possibility frontier, the absolute value of the marginal rate of transformation
A. increases. B. initially decreases, then increases. C. decreases. D. initially increases, then decreases.