At the utility maximizing level, the ratio of the marginal utility of apples to oranges is 3:2 . If the price of an apple is $6, then the price of an orange is _____
a. $6
b. $4
c. $9
d. $8
b
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Which of the following statements about the Herfindahl-Hirschman Index is CORRECT?
I. It is the square of the percentage market share of each firm summed over the largest 50 firms (or summed over all the firms if there are fewer than 50 ) in a market. II. A small index is indicative of a high degree of competition. III. The index is used to measure the degree of competition. A) I only B) I, II only C) I, III only D) I, II, and III
The failure of markets to adequately protect the environment can viewed either as a problem of
a. externalities or as a problem of common resources. b. externalities or as a problem of private goods. c. the overprovision of public goods or as a problem of the underprovision of private goods. d. club goods or as a problem that arises when the quantity of excludable goods exceeds the socially-efficient quantity.
In a competitive labor market, if the supply of labor increases, wages will:
A. decrease. B. increase. C. remain the same. D. drop to zero.
The most desirable rate of output for a firm is the output that
A. Maximizes total revenue. B. Minimizes marginal costs. C. Maximizes total profit. D. Minimizes total costs.