The host at a party offers Justin a sixth beer. Justin says, “No thanks, man. The marginal utility of that fifth beer was, like, 20 cents, but the marginal utility of the sixth would be minus 10 cents.” From his comments, we deduce that Justin
A. is an alcoholic.
B. may think that a sixth beer would make him sick.
C. is irrational.
D. wrongly estimates the marginal utility of the fifth beer.
Answer: B
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When federal government spending exceeds tax revenues, the federal government runs a budget surplus
Indicate whether the statement is true or false
A fall in the money wage rate ________ aggregate supply and ________
A) decreases; shifts the AS curve rightward B) increases; shifts the AS curve leftward C) decreases; shifts the AS curve leftward D) increases; shifts the AS curve rightward E) does not change; does not shift the AS curve
The supply of euros is managed by
A) the European Monetary Union. B) the European Monetary System. C) the European Central Bank. D) the European Bank for Reconstruction and Development.
Answer the following statement(s) true (T) or false (F)
1. Oligopolies earn zero long-run economic profits. 2. An oligopoly has a low concentration ratio. 3. The concentration ratios for U.S. industries fail to account for foreign competition in those industries. 4. Competition is restricted by government regulations that impose barriers to entry to an industry. 5. Economies of scale exist when a firm’s long-run average total cost increases as its output increases.