Gunther rents Nintendo games and videos. The marginal utility from his last Nintendo game is 10 and that from his last video is 5. Nintendo games rent for $2 each. Gunther's demand curve for games is shown in the figure above
How many videos a week does Gunther rent? A) 1
B) 2
C) 3
D) 4
D
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A good salesperson can sell $500,000 worth of goods, while a poor one can sell only $100,000 worth of goods. Job applicants know if they are good or bad, but the firm does not
A firm will offer job applicants a choice between a fixed salary of $10,000 or a 10% commission. Assuming risk-neutral salespersons and no opportunistic behavior, can the firm determine a prospective good salesperson from a poor one? A) Yes, because a poor salesperson will always choose the fixed salary. B) Yes, because a good salesperson will always choose the fixed salary. C) No, because a poor salesperson is indifferent between the two contracts. D) No, because a good salesperson is indifferent between the two contracts.
In order to maximize profits, a firm should produce at the output level for which:
a. average cost is minimized. b. marginal revenue equals marginal cost. c. marginal cost is minimized. d. price minus average cost is as large as possible.
Spending by businesses on things such as machines and buildings which can be used to produce goods and services in the future is
A. savings. B. consumption. C. consumption goods. D. investment.
If you want to vote for the management of the corporation, you should buy
A. common stock. B. bonds. C. preferred stock. D. either common stock or preferred stock.