The only way a consumer can optimize at a corner of her budget is if at least one of the goods is not essential.
Answer the following statement true (T) or false (F)
True
Rationale: A corner solution where a consumer does not consume some of one good can arise only if indifference curves cross at least some of the axes --- which implies that at least some goods are not essential.
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Since the 1930s the United States has experienced continuous deflation
Indicate whether the statement is true or false
Explain why some small start-up companies choose not to pay dividends even though they make very large profits. Why might investors still be happy with this arrangement?
What will be an ideal response?
A rational person may remain less than fully informed on an issue to be decided in an election
a. True b. False Indicate whether the statement is true or false
If a monopoly is operating along the portion of its demand curve where marginal revenue is positive, its
A) total revenue increases when price decreases. B) total revenue decreases when price decreases. C) total revenue remains the same when price decreases. D) total revenue is zero.