If good A has a marginal utility of 30 and a price of $5, and good B has a marginal utility of 10 and a price of $2, then:
a. good A is a better buy than good B.
b. good B is a better buy than good A.
c. goods A and B are of equal value to this consumer.
d. neither good A nor B is worth the money.
e. goods A and B should both be purchased.
a
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The provision of additional cash to the banking system is an example of ________ policy.
A. structural B. aggregation C. monetary D. fiscal
If the Fed chose to change its policy actions implemented during the heart of the recession faster than the timing suggested by the White House, this would be an indication of the Fed's
A) independence. B) frictional relationship with the White House. C) changing its monetary policy target. D) lack of credibility.
In drilling a new oil well in an existing oil field, the fact that output on existing wells is reduced means that
a. existing wells have negatively sloped marginal cost curves. b. existing wells and new wells are owned by different people. c. existing wells and new wells are owned by the same people. d. there is a discrepancy between private and social marginal costs.
New technologies may reduce oligopoly power by
a. increasing the minimum efficient scale b. raising barriers to entry c. raising prices and lowering output d. reducing barriers to entry e. reducing the choices available to consumers in the market