Consumers do not prefer gifts-in-kind to cash gifts
What will be an ideal response?
True. It is possible the consumer would buy the same gift with cash and therefore be just as well off. If the consumer bought something other than the gift, that means that this something else is preferred to the gift. At best, the gift yields the same utility as would have been achieved with the cash, but never more.
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Explain how the United Nations uses the Human Development Index (HDI) to better measure the standard of living around the globe
What will be an ideal response?
At the efficient level of production, ________
A) producer surplus must be greater than consumer surplus B) consumer surplus must be greater than producer surplus C) there is no deadweight loss D) the market price is greater than the monopoly price
A perfectly competitive firm's marginal cost exceeds its marginal revenue at its current output. To increase its profit, the firm will
A) lower its price. B) raise its price. C) decrease its output. D) increase its output.
Refer to Figure 12-9. Identify the short-run shut down point for the firm
A) a B) b C) c D) d