When we assume that consumers want to pay the lowest price possible, we assume that consumers are:

A. cheap.
B. deceitful.
C. rational.
D. informed.


C. rational.

Economics

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Suppose tastes are NOT monotonic anywhere. Then diminishing MRS is not consistent with convexity of tastes.

Answer the following statement true (T) or false (F)

Economics

If the U.S. exports passenger jet aircraft, what is the effect in the foreign exchange market?

a. It will increase demand for U.S. dollars. b. It will decrease demand for U.S. dollars. c. It will increase supply of U.S. dollars. d. It will decrease supply of U.S. dollars.

Economics

Firms in which market structure hold the most market power?

(A) Monopolistic competition (B) Oligopoly (C) Monopoly (D) Perfect competition

Economics

If the price were $10, what would the firm do in the (a) short run? (b) the long run?

Economics