All points on an indifference curve represent combinations of two goods that are equally desirable to the consumer
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
As new firms enter a monopolistically competitive market, profits of existing firms ____ and product diversity in the market ____
a. decline; decreases b. rise; decreases c. rise; increases d. decline; increases
Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium
What will be an ideal response?
In regulating a natural monopoly, the price strategy that ensures the highest possible output and zero profit is one that sets price
A) corresponding to the demand curve where marginal revenue equals zero. B) equal to average variable cost where it intersects the demand curve. C) equal to average total cost where it intersects the demand curve. D) equal to marginal cost where it intersects the demand curve.
Suppose an economist develops a theory that higher food prices arise from higher gas prices. According to the scientific method, which of the following is the economist's next step?
a. Collect and analyze data. b. Go to a laboratory and generate data to test the theory. c. Publish the theory without testing it. d. Consult with other economists to see they agree with the theory.