As long as scarcity exists,
a. product prices play no role in utility maximization
b. income plays no role in utility maximization
c. income and product prices must both be considered in utility maximization
d. consumers maximize utility by consuming all products until their marginal utility is zero
e. product prices will be zero
C
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What happens in the long run if firms in a monopolistically competitive industry are incurring economic losses? Explain
What will be an ideal response?
A monopoly has
a. A perfectly elastic demand curve b. A perfectly elastic supply curve c. A downward sloping demand curve d. A upward sloping demand curve
In centrally planned economies, most prices are not
a. established by central planners b. inflexible c. set below the market-clearing level d. based on consumer demand e. the cause of shortages of supply
The net-export effect of contractionary monetary policy is
A. the appreciation of the value of the dollar and a resulting decrease of U.S. net exports. B. the depreciation of the value of the dollar and a resulting decrease of U.S. net exports. C. the depreciation of the value of the dollar and a resulting increase of U.S. net exports. D. the appreciation of the value of the dollar and a resulting increase of U.S. net exports.