A person will be maximizing their utility when
A. the marginal utility of product A is greater than the price of product A.
B. the price of product A is greater than the marginal utility of product A.
C. the price of product A = the marginal utility of product A.
C. the price of product A = the marginal utility of product A.
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If in the short run the demand for mass transit is relatively inelastic and in the long run the demand is relatively elastic, then a price ________ will ________ total revenue in the short run but ________ total revenue in the long run.
A. decrease; decrease; decrease B. decrease; increase; decrease C. increase; decrease; increase D. increase; increase; decrease
To maximize profits in the off-peak period, the ________ marginal revenue is set equal to the ________ marginal cost.
A) off-peak; short-run B) off-peak; long-run C) peak; long-run D) peak; short-run
Employing all its available resources nation Alpha can produce either 800 units of chemicals or 1,600 units of clothing. Nation Beta can produce either 200 units of chemicals or 800 units of clothing. Which of the following statements is true?
A. Alpha has a comparative advantage in producing chemicals. B. Beta is the high-cost producer of clothing. C. Beta has a comparative advantage in producing chemicals. D. Alpha has a comparative advantage in producing clothing.
The interest rate at which the present value of costs equals the present value benefits is the
A. coupon interest rate. B. internal rate of return. C. yield to maturity. D. market interest rate.