The slope of an indifference curve is equal to the ratio of the ____ of the good on the horizontal axis to the ____ of the good on the vertical axis
a. marginal utility (MU); marginal utility (MU)
b. total utility (TU); total utility (TU)
c. marginal product (MP); marginal product (MP)
d. price (P); total utility (TU)
a
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When the price of margarine is $2 per unit, 10 units of butter are demanded. When the price of margarine increases to $6 per unit, 30 units of butter are demanded. What is the cross-price elasticity between the two goods?
A) -1 B) 1 C) 2 D) 5
The average variable cost curve slopes upward with a higher rate of output in the short run because of
A. Implicit but not explicit costs. B. The shape of the average fixed cost curve. C. The effect of diminishing returns. D. Diseconomies of scale.
Which of the following is not an institutional constraint that limits the United States' production possibilities?
A. Blue laws that restrict bars and liquor stores from opening on Sunday B. Restrictions on child labor C. The fact that Americans dislike working at night or on the weekends D. Workers who are "in between" jobs
Refer to Figure 21.3. The best estimate of where diminishing marginal returns begin is at an output level of
A. 10. B. 40. C. 20. D. 30.