Refer to the above figure. Under monopsony, the wage rate will be
A) W1.
B) W2.
C) W3.
D) W5.
D
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Suppose that for Alicia the marginal benefit (MB) of producing is $75 and that the marginal cost (MC) of producing is $5. Suppose also that her marginal benefit of stealing is $85 and the marginal cost of stealing is $5. Is Alicia currently maximizing utility in terms of producing and stealing? If not, should she produce more and steal less, or produce less and steal more to move toward utility maximization?
A. Yes, Alicia is maximizing utility. B. No, Alicia is not maximizing utility. Since the MB/MC ratio for producing is less than the MB/MC ratio for stealing, Alicia should produce more and steal less. C. No, Alicia is not maximizing utility. Since the MB/MC ratio for producing is greater than the MB/MC ratio for stealing, Alicia should produce more and steal less. D. No, Alicia is not maximizing utility. Since the MB/MC ratio for producing is less than the MB/MC ratio for stealing, Alicia should steal more and produce less.
Lunch in Jamie's dorm is an all-you-can-eat buffet, served from 11 a.m. until 1 p.m. By noon, the buffet is picked over, and by 12:30, there are very few popular items left. The garbage bins, though, are full of food. Over time, you would expect that students would:
A. start distributing themselves more evenly over the lunch hours to avoid long lines. B. come earlier and earlier for lunch in order to have a better selection from which to choose. C. stop eating so much at lunch because they would notice that it generates waste. D. be pickier in their selections from the buffet.
Exhibit 6-1 Business cycle
In Exhibit 6-1, point E represents:
A. recession and a trough. B. peak and a trough. C. recession and a peak. D. recovery and a peak.
Which of the following statements is TRUE?
A) As more of a good is consumed, its total utility increases, unless the good is subject to diminishing marginal utility. B) As more of a good is consumed, its total utility increases, even if the good is subject to diminishing marginal utility. C) No two people have identical utility functions, just as no two people have identical fingerprints. D) Both A and C above.