The marginal utility from the first burrito Bobby consumes is larger than the marginal utility from the first taco Bobby consumes. As a result
A) tacos are an inferior good for Bobby.
B) Bobby will never consume tacos.
C) Bobby will consume a taco only if the price of a taco is less than the price of a burrito.
D) burritos and tacos are substitute goods for Bobby.
C
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The burden of a tax falls entirely on buyers if ________
A) the price elasticity of demand is zero (perfectly inelastic) B) the price elasticity of demand is greater than 1 C) the income elasticity of demand is high D) the price elasticity of supply is unitary elastic
In a perfectly competitive industry, the industry demand curve
A) must be horizontal. B) must be vertical. C) is upward sloping. D) is downward sloping.
Opportunity cost can best be defined as the
A. value of what must be given up in order to acquire an item. B. money cost to the buyer to acquire a good or service. C. total value of all the other items that otherwise could be acquired. D. cost to the seller to produce an item. E. time cost to obtain the money to buy an item.
The primary objective of the producer is to find the rate of output that maximizes profit.
Answer the following statement true (T) or false (F)