Refer to the above data. If the consumer has a money income of $52 and the prices of J and K are $8 and $4 respectively, the consumer will maximize her utility by purchasing:
A) 2 units of J and 7 units of K.
B) 5 units of J and 5 units of K.
C) 4 units of J and 5 units of K.
D) 6 units of J and 3 units of K.
Ans: C) 4 units of J and 5 units of K.
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Which of the following is most likely to be observed in a community where legal ceilings are imposed on residential rents?
A) Landlords will do a better job of property maintenance. B) People moving into the community will have difficulty locating residential space to rent. C) Poor people will be able to find adequate housing. D) Tenants will reduce their use of housing space. E) The people most in need of housing will be able to obtain the space they want.
How do economies of scale contribute to the development of an oligopoly?
A) Economies of scale make it legally difficult for new firms to enter. B) Economies of scale make small-scale producers inefficient. C) Economies of scale are based on control of a key resource, without which other firms cannot enter an industry. D) Economies of scale are guaranteed when a patent is granted.
Typically, perfect competitors advertise their specific goods
Indicate whether the statement is true or false
The most important advantages of bigness will be found in industries that show increasing returns to scale.
Answer the following statement true (T) or false (F)