The marginal utility of good A is 6 and the marginal utility of good B is 18. The price of good A is $2. The price of good B must be ________ if the consumer is optimizing her utility.
A. $5
B. $15
C. $18
D. $6
Answer: D
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Capital charges equal the company's invested capital divided by the weighted average cost of capital
Indicate whether the statement is true or false
A person’s decision to supply a certain amount of labor in a week is simultaneously a decision to consume a certain amount of leisure per week.
Answer the following statement true (T) or false (F)
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. At what level of output (number of households) is Fun Cable Company's total revenue maximized?
A. 2,500 B. 2,750 C. 5,000 D. Indeterminate from the given information.
In oligopolistic markets
A) there are many firms. B) there are no barriers to entry. C) there are only a few firms. D) all firms are price takers.