Assuming well-defined indifference curves, when marginal utility is zero, total utility is at a maximum.
Answer the following statement true (T) or false (F)
True
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Price indexes can overstate inflation because they
A) omit some quality improvements. B) do not contain the prices of any used goods. C) do not contain the prices of foreign goods. D) do not contain the prices of services.
Average cost for the firm in Table 8.1
A) cannot be determined from the information given. B) is upward-sloping for all output values shown. C) is constant for all output values shown. D) is downward-sloping for all output values shown. E) is U-shaped.
Typically a mix of informational and persuasive advertising is used for
A) experience goods. B) credence goods. C) credible goods. D) search goods.
A person covered by a generous insurance plan smokes more cigarettes than he does normally. This is an example of a: a. lemon problem
b. moral hazard. c. adverse selection. d. risk selection.