In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal:
A. one should consume less of time-intensive goods.
B. one should consume more of time-intensive goods.
C. the consumer's equilibrium position is not altered.
D. the marginal utility derived from each product must be multiplied by consumption time in
determining equilibrium.
Answer: A
You might also like to view...
Decisions to cut taxes are made by ________ and are an example of ________ policy.
A. the Federal Reserve; fiscal B. Congress; fiscal C. Congress; monetary D. the President; monetary
Suppose a single-input production function has initially increasing but eventually decreasing marginal product -- and suppose we know that an interior solution is profit maximizing. In this case, the first order condition for the profit maximization problem
A. is necessary for identifying the profit maximizing production plan. B. is sufficient for identifying the profit maximizing production plan. C. is both necessary and sufficient for identifying the profit maximizing production plan. D. is neither necessary nor sufficient for identifying the profit maximizing production plan.
A market structure in which many firms are selling an identical product is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
Refer to the above figure. The wage rate under perfect competition is
A) W2. B) W3. C) W4. D) W5.