Rick likes to consume Coke or Pepsi. If the marginal rate of substitution of both the goods is constant, Rick's indifference curve is likely to be _____
a. a straight line
b. downward sloping
c. L-shaped
d. U-shaped
a
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In the figure above, the poorest 20 percent of all households receive what share of all income?
A) 10 percent B) 20 percent C) 30 percent D) 40 percent
Suppose your expenses for this term are as follows: tuition: $28,000, room and board: $9,000, books and other educational supplies: $2,500
Further, during the term, you can only work part-time and earn $16,000 instead of your full-time salary of $42,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $36,500 B) $56,500 C) $65,500 D) $72,500
Refer to Figure 10.1. Suppose that the government decides to limit monopoly power with price regulation. If the government sets the price at the competitive level, it will set the price at ________
A) P1 B) P2 C) P3 D) P4 E) none of the above
The monopolist's demand curve is
a. downward sloping and identical to the market demand curve b. downward sloping and identical to the marginal revenue curve c. downward sloping and lies below the marginal revenue curve d. a horizontal line at a price consistent with maximum profit e. a U-shaped curve that lies above the U-shaped ATC curve