Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils
Instead of consuming this bundle, Alfred should: A) buy more iced tea and less lemonade.
B) buy more lemonade and less iced tea.
C) buy more iced tea and lemonade.
D) buy less iced tea and lemonade.
E) none of the above is necessarily correct.
E
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In the above figure, if the firm is in monopolistic competition, it will produce
A) 40 units. B) 60 units. C) between 61 and 99 units. D) 100 units.
In the short run, if a firm shuts down it avoids its variable cost but not its fixed cost
Indicate whether the statement is true or false
Paul and Maggie advertise for a babysitter. Jenny is the only one who answers the ad and she's hired. She asks for $7 per hour and gets it. She occasionally thinks of raising the rate to $10 but is afraid that Paul and Maggie will decide to advertise again. This tale is analogous to
a. monopolistic competitive pricing b. the idea of nationalization c. contestable markets d. laissez-faire e. creative destruction
When in France you notice that prices are posted in euros, this best illustrates money's function as
a. a store of value. b. a medium of exchange. c. a unit of account. d. a method of barter.