The graph below shows part of a consumer's indifference map for units of coffee and tea, where I1 and I2 represent indifference curves. Which of the following statements is correct?
A. The consumer prefers E to F
B. The consumer prefers C to A
C. The consumer likes B and D equally well
D. The consumer likes D better than E
B. The consumer prefers C to A
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In a monopsony labor market, imposition of a minimum wage will
a. reduce employment b. increase unemployment c. cause employers to actually reduce wages d. reduce the number of people looking for work e. none of the above
Clint puts $200 into an account when the interest rate is 8 percent. Later he checks his balance and finds that he has a balance of about $272.10 . How many years did Clint wait to check his balance?
a. 3 years b. 3.5 years c. 4 years d. 4.5 years
If a firm in a perfectly competitive market faces the cost curves in the graph shown and produces at the profit-maximizing level of output, which of the following is true? A firm will:
A. plan to exit the industry in the long run if price falls below $15. B. continue to operate in the short run if price is below $11. C. will earn maximum profits at a quantity of 35. D. make positive profits any time the price is greater than $11.
Which of the following conditions is TRUE for a monopolist?
A. MR = P B. MR < P C. MR = AFC D. MR < AVC