If a consumer purchases only two goods, X and Y, and if (MUx / Px) = (MUy / Py), then the consumer cannot reallocate her expenditures on X and Y to increase her utility unless she has more money to spend
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is not one of the laws that provides the foundation for antitrust policy in the U.S.?
A. The Sherman Act B. The Cargill Act C. The Clayton Act D. The Federal Trade Commission Act
Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800 . In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100 . From this, we can conclude that
a. butterflies are a negative externality for Billy and Sammy b. Denise will set up the butterfly garden without any help from her free-rider neighbors c. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built d. if Billy refuses to contribute to the butterfly garden, Denise will not have one e. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up. Otherwise, no garden.
As output rises
A. fixed cost is constant and average fixed cost falls. B. fixed cost and average fixed cost both fall. C. fixed cost and average fixed cost are constant. D. fixed cost falls and average fixed cost is constant.
Refer to the information provided in Figure 4.1 below to answer the question(s) that follow.
Figure 4.1Refer to Figure 4.1. Assume that initially there is free trade. The quantity demanded of apples will be reduced by 2 million per day if the United States imposes a tax of ________ per apple.
A. 10 cents B. 20 cents C. 30 cents D. 40 cents