Revealed preference is:
A. the idea that people's preferences can be determined by observing their choices and behavior.
B. the notion that people reveal the utility they get by reporting it on a numerical scale.
C. the method that psychologists, anthropologists, and economists use to measure utility.
D. All of these are true.
A. the idea that people's preferences can be determined by observing their choices and behavior.
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Referring to the above graphic, which of the following statements is FALSE?
A) In panel (a), a competitive situation is shown in which equilibrium is established at the intersection of D and S at point E. B) In panel (a), the equilibrium price is Pe and the equilibrium quantity Qe. C) The price the monopolist charges in panel (b) at Pm is lower than the price that the competitive producer charges. D) The monopolist produces at Qm, and charges a price ofPm, while maximizing profits at the intersection of MC and MR.
For a firm in a perfectly competitive industry, which of the following is TRUE?
A. MR > P B. MR < P C. MR = P D. AVC = ATC
A firm's ________ curve in a perfectly competitive product market is the same as its supply curve. Similarly, a firm's ________ curve in a perfectly competitive labor market is the same as its demand curve.
A. total revenue; total cost B. marginal cost; marginal revenue product C. total cost; total revenue D. marginal revenue product; marginal cost
A movement down along a given isoquant causes the marginal rate of technical substitution to:
A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information.