Suppose the consumer's indifference curves are concave (i.e., bowed away from the origin) instead of convex. In this situation,
a. along an indifference curve, the marginal value of X is falling as more X and less Y is consumed.
b. all baskets on the budget line give the consumer the same level of satisfaction.
c. the marginal value of X must equal PX/PY at the consumer's optimum.
d. the consumer's optimum is always a corner solution.
d. the consumer's optimum is always a corner solution.
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free-rider is a person or firm that ________ from a good or service ________.
A) does not benefit; by paying for it B) benefits; by paying for it C) does not benefit; by paying double the price for it D) benefits; without paying for it
The market demand curve for a monopolist is typically
a. unit price elastic. b. downward sloping. c. horizontal. d. vertical.
Total costs divided by output equals ______.
Fill in the blank(s) with the appropriate word(s).
Suppose a monopoly is producing output so that marginal revenue equals marginal cost. If the monopolist reduces output, it:
A. can charge a higher price. B. will increase profits. C. will decrease marginal revenue. D. can charge a higher price and it will increase profits.