Behavioral economics refers to the study of situations
A) where consumers and firms appear to value fairness when they make choices.
B) where consumers and firms disobey the laws of demand and supply.
C) where consumers and firms appear to make choices that are appropriate to reach their goals.
D) where consumers and firms do not appear to be making choices that are economically rational.
D
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At a consumer optimum involving goods X and Y, the marginal utility of good X equals 5 utils. The price of good Y is three times the price of good X. What is the marginal utility of good Y?
A. 5. B. 3. C. 15. D. There is not enough information.
If more is better, how can you explain that more pollution doesn't violate this principle?
What will be an ideal response?
A price-discriminating monopoly charges the lowest price to the group that:
A. has the most elastic demand. B. purchases the largest quantity. C. engages in the most arbitrage. D. is least responsive to price changes.
Why is the monopoly total welfare lower than the competitive total welfare?
What will be an ideal response?