A consumer can be said to have achieved equilibrium with respect to consumption when:
a. the marginal utility of each product consumed is the same.
b. the last dollar spent on each product yields the same marginal utility.
c. the total utility of each product consumed is at a maximum.
d. the marginal utility of each product consumed is at a maximum.
b
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In the prisoner's dilemma setting for stealing and producing, both participants end up __________, which turns out to be ________________________ stolen. The government _________ make both participants better off by changing the payoff matrix.
A. stealing; better for them than if they had both not; can B. stealing; worse for them than if they had both not; can C. not stealing; better for them than if they had both; cannot D. not stealing; worse for them than if they had both; cannot
The market interest rate is important to the investment decision of firms: a. only when funds are borrowed from financial intermediaries. b. only when firms have the money to invest in capital. c. regardless of whether funds must be borrowed or firms have the funds on hand. d. only when firms have funds on hand and are ready to lend them
e. only when firms purchase new equipment rather than a new building.
Strategic behavior is the result of an interdependent world
Indicate whether the statement is true or false
Which of the following statements is correct? Monopolies are socially inefficient because they (i) charge a price above marginal cost. (ii) produce too little output. (iii) earn profits at the expense of consumers. (iv) maximize the market's total surplus
a. (iii) only b. (iii) and (iv) only c. (i) and (ii) only d. (i), (ii), (iii), and (iv)