Samara's income is $30 a month and she spends all of it on music downloads and gasoline. The price of a music download is $1.50 and the price of a gallon of gasoline is $3
At Samara's best affordable point, her marginal rate of substitution is ________ per video tape. A) 0.5 of a download
B) 1 download
C) 1.5 downloads
D) 2 downloads
A
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Why does the price level in a perfectly competitive market move toward the zero-profit point?
a. Because firms enter and exit the market in response to gains and losses b. Because short-run losses reverse the effects of long-run gains c. Because profitable firms increase short-run productivity d. Because firms operate below the average cost curve
An accurate demand curve can be derived by examining the quantities of a good that are sold over time as the price varies.
Answer the following statement true (T) or false (F)
Refer to Figure 8.8. If this farmer is producing the profit-maximizing level of output, her profit is A) $0. B) $2,800. C) $3,000. D) $12,000.
In the graph showing the Phillips curve, at point B the inflation rate is ______.
a. the same as at point A
b. less than at point A
c. more than at point A
d. double what it is at point A