Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.Table 19.3Michael's Utility ScheduleUnits of ColaTU of ColaMU of ColaUnits of PretzelsTU of PretzelsMU of Pretzels14040130302 322 2039624366164112 478 5124 584 In Table 19.3, what is the marginal utility of the fifth unit of cola?
A. 24.
B. 6.
C. 12.
D. 16.
Answer: C
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A sequential game can be used to analyze whether a retail firm should build a large store or a small store in a city, when the correct choice depends on whether a competing firm will build a new store in the same city. Which of the following is used to analyze this type of decision?
A) an either-or graph B) a decision tree C) a decision matrix D) a sequential matrix
Consumers usually buy fewer units of a good than the quantity that would maximize total utility from consuming the good because
A. marginal utility becomes zero after just a few units of the good. B. they are not rational. C. of the law of demand. D. they have limited incomes.
The GDP includes
A. the value of all intermediate goods and services. B. the value of all final goods and services. C. the value of both intermediate and final goods and services. D. the value of all transactions.
A profit-maximizing firm in the short run will expand output:
A. Until marginal cost begins to rise B. Until total revenue equals total cost C. Until marginal cost equals average variable cost D. As long as marginal revenue is greater than marginal cost