Max has allocated $100 toward meats for his barbecue. His budget line and indifference map are shown in the above figure. If Max is currently at point e,
A) his MRS is less than the trade-off offered by the market.
B) he is willing to give up more burger than he has to, given market prices.
C) he is not maximizing his utility.
D) All of the above.
D
You might also like to view...
The price elasticity of supply of a good compares:
a. the percentage change in the price of the good with the percentage change in its quantity supplied. b. the percentage change in the quantity supplied of the good with the percentage change in its price. c. the percentage change in the quantity demanded of the good with the percentage change in its supply. d. the percentage change in the quantity supplied of the good with the percentage change in its demand.
Darryl can build picnic tables twice as fast as Trevon. Darryl can assemble swing sets three times as fast as Trevon. The law of comparative advantage suggests that
a. Darryl can gain only at Trevon's expense. b. Trevon can gain only at Darryl's expense. c. both can gain if Darryl specializes in assembling swing sets and Trevon in building picnic tables. d. both can gain if Darryl specializes in building picnic tables and Trevon in assembling swing sets.
Which of the following provides a good explanation of why multinational firms exist?
A. Internalization advantages that favor direct investment over contracting with independent foreign firms B. The need to shift financial capital between countries C. Firms lack inherent knowledge of foreign laws, procedures, and practices. D. Location factors that favor exporting over foreign production
The equilibrium price is the price at which the quantity
A) sold equals the quantity bought.
B) demanded equals the quantity sold.
C) demanded equals the quantity supplied.
D) supplied equals the quantity bought.