Utility theory assumes that a consumer tries to
A) maximize her average utility.
B) maximize her marginal utility.
C) maximize the difference between total and marginal utility.
D) maximize her total utility.
Answer: D
You might also like to view...
In the IS-LM model, the two variables that are affected by the interest rate are
a. money supply and money demand. b. money supply and investment spending. c. money demand and consumption. d. money demand and investment spending. e. none of the above.
In the above figure for a monopolistically competitive firm, the profit-maximizing output and price are respectively
A) 80 units and $11. B) 50 units and $8. C) 60 units and $9. D) 60 units and $14.
Country A and country B initially have the same per capita income. Suppose that A sustains an annual growth rate of 3.5 percent, while the annual growth rate of country B is 1.75 percent. The "rule of 70" indicates that after forty years, the per capita income of country A will be approximately ____ that of country B
a. one-half b. 70 percent greater than c. twice d. four times
Briefly explain the principle of comparative advantage.
What will be an ideal response?