Daisy is consuming X and Y so that she is spending her entire income and MUx/Px = 12 and MUy/Py = 10. To maximize utility, she should
A. consume more X and less Y.
B. continue to consume the same amount of X and Y since she is already maximizing utility.
C. consume less X and more Y.
D. consume less of both X and Y.
Answer: A
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At the output where the combined amounts of consumer and producer surplus are largest
A. marginal benefit exceeds marginal cost by the greatest amount. B. consumer surplus exceeds producer surplus by the greatest amount. C. the areas of consumer and producer surplus necessarily are equal. D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
If your supplier becomes more profitable
a. you become more profitable by acquiring it b. you become less profitable by acquiring it c. acquiring it will make you more profitable if there are no synergies to exploit d. unless there are no synergies to exploit through acquisition, acquiring it will not make you more profitable
Autarky is the situation of national self-sufficiency, in which there is no economic interaction with foreign producers or consumers
Indicate whether the statement is true or false
Firms whose central business is providing individual account shares of a group of stocks, bonds, or both are known as:
A. insurance companies. B. thrifts. C. commercial banks. D. mutual funds companies.