Rebecca consumes both iced tea and coffee. Iced tea is priced at $1.50 per bottle and coffee at $2.00 per 16-ounce cup. Which of the following marginal utility pairs is consistent with Rebecca's consumer equilibrium at these prices?
a. MU of iced tea = 1; MU of coffee = 1
b. MU of iced tea = 1; MU of coffee = 2
c. MU of iced tea = 2; MU of coffee = 3
d. MU of iced tea = 3; MU of coffee = 4
d
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If a firm is experiencing diminishing marginal returns, its marginal product is negative
a. True b. False
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, buys office supplies for $500, rents an airplane for
$6,000 . pays $1,300 for fuel and maintenance, and hires one worker for $30,000 . Sam's total revenue from pilot training classes this year equaled $90,400 . Sam's explicit costs this year equals: a. $84,400. b. $39,000. c. $55,000. d. $45,600. e. $40,000.
Explain the two relations that determine the evolution of output in the long run
What will be an ideal response?
The purchase by a foreign government of an airplane produced in the United States is included in U.S
A) consumption expenditures. B) investment expenditures. C) government purchases. D) net exports.