An isocost line reveals the
A) costs of inputs needed to produce along an isoquant.
B) costs of inputs needed to produce along an expansion path.
C) input combinations that can be purchased with a given outlay of funds.
D) output combinations that can be produced with a given outlay of funds.
C
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If MiiTunes and The Rock Shop are both in the music business and faced with the choices outlined in the figure, we can predict the outcome will be that:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. MiiTunes charges high prices and The Rock Shop does not enter.
B. there is more than one stable outcome to this game.
C. there is no stable outcome to this game.
D. None of these statements is true.
According to a utilitarian, total social utility will be maximized when marginal dollars are distributed to the people with the
a. lowest marginal utility of income. b. highest marginal utility of income. c. highest total utility from their income. d. most productive labor resources.
Macroeconomists study the price of individual products like beer.
a. true b. false
Refer to the graph below. One U.S. dollar will purchase how many euros?
Assume that U.S. and European governments adopt a system of flexible exchange rates, and the figure below shows the market for euros.
A. 0.90 euro
B. 1.00 euro
C. 1.11 euro
D. 1.90 euro