A utility-maximizing consumer would not consume more of a good if
a. marginal utility increases as more is consumed
b. total utility diminishes as more is consumed
c. MU/P < 1
d. MU/P < 1
e. MU/P = 1
B
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A) reserves of U.S. dollars held by the World Bank B) U.S. government's holdings of foreign currency C) reserves of U.S. dollars held by foreign banks D) holdings of foreign currency by the public and the banks
The demand for Olin skis is likely to be
a. less elastic than the demand for skis in general b. more elastic than the demand for skis in general c. unit elastic relative to the demand for skis in general d. as elastic as the demand for skis in general e. greater than the demand for skis in general
If the average total cost curve is always above the demand curve for a monopolist:
a. the profits of the monopolist will be large. b. the monopolist must be producing inefficiently. c. the monopolist will suffer economic losses. d. entry will occur, forcing the monopolist to reduce price and expand output.
Which of the following is an example of a pure public good?
A. An automobile B. A mall C. A teddy bear D. An army