Individuals maximize utility in allocating their time only when
a. any change in their use of time reduces their total satisfaction
b. they consciously and carefully weigh the expected marginal utilities per unit
c. they consciously and carefully weigh the actual marginal utilities per unit of time spent in each activity
d. the expected average utility of each activity is equal
e. people make a concerted effort to measure satisfaction
A
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For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10 . It follows that the
a. production of the 100th unit of output increases the firm's profit by $1. b. production of the 100th unit of output increases the firm's average total cost by $1. c. firm's profit-maximizing level of output is less than 100 units. d. production of the 101st unit of output must increase the firm's profit by more than $1.
Which of the following might increase the supply curve of labor?
a. Easing licensing requirements. b. Elimination of discrimination against blacks. c. All of the answers are correct. d. Elimination of discrimination against females.
What is the difference between a business cycle and the day-to-day ups and downs of the market?
What will be an ideal response?
Assume that the 4K and OLED television sets industry is perfectly competitive. Suppose a producer develops a successful innovation that enables it to lower its cost of production. What happens in the short run and in the long run?
A) Initially, the firm will be able to increase its profit significantly, but in the long run its profits will still be greater than zero but lower than its short-run profits because other firms would also innovate. B) The firm will probably incur losses temporarily because of the high cost of the innovation, but in the long run it will start earning positive profits. C) This firm will be able to earn above normal profits indefinitely if it obtains a patent for its innovation. D) The firm will be able to increase its economic profits temporarily, but in the long run its economic profits will be eliminated as other firms copy the innovation.