According to the No Marginal Improvement Principle, if X* is the best choice, then:
A. MB must be greater than MC at X*.
B. MB must be equal to MC at X*.
C. MB must be less than MC at X*.
D. MB must be greater than or equal to MC at X*.
B. MB must be equal to MC at X*.
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The amount of real domestic output that will be purchased at each possible price level is best shown by the:
A. aggregate demand curve. B. aggregate expenditures model. C. aggregate supply curve. D. difference between real and nominal GDP.
Price discrimination is the practice of
A) charging different prices for the same good when the price differences arise because of differences in cost. B) charging different prices for the same good when the price differences are not due to differences in cost. C) charging higher prices for brand-named goods and lower prices for generic versions of the goods. D) charging different prices for different qualities of a product.
Which of the following is NOT a key financial service provided by the financial system?
A) risk sharing B) profitability C) liquidity D) information
In the futures market, the difference between the price of the futures and the underlying asset is eliminated by
A) speculators. B) hedgers. C) arbitrageurs. D) longs.