What is the maximum amount of good X that can be purchased if X and Y are the only two goods available for purchase and Px = $10, Py = $20, Y = 0, and M = 400?
A. 0
B. 20
C. 30
D. 40
Answer: D
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Many universities have either a top football program OR a top basketball program. Very few have both. These results suggest the presence of
A) economies of scope. B) diseconomies of scope. C) returns to scale. D) the law of diminishing marginal returns.
A profit-maximizing firm in a perfectly competitive market will always produce a quantity of output that: a. minimizes the per-unit cost of production
b. is expected to maximize total revenue. c. maximizes the amount by which total revenue exceeds total cost. d. brings average total cost and price into equality.
A discovery that increases wheat yields per acre hurts farmers by increasing supply and lowering their total revenues
a. True b. False Indicate whether the statement is true or false
Economists use abstract models because:
A. every economic situation is essentially the same, so specific details are unnecessary. B. every economic situation is unique, so it is impossible to make generalizations. C. they are useful for describing general patterns of behavior. D. computers have allowed economists to develop abstract models.