Consumers maximize their total utility subject to a budget constraint if the
a. total utility is increasing and marginal utility decreasing
b. dollar amount (value) spent on each good is the same
c. total utility gained from each good is equal
d. marginal utility of the last dollar spent on each good is equal
e. total utility equals the total budget constraint
D
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Consider the monopsony in the above figure. The 200th hour of labor creates how much added revenue per hour for the monopsony?
A) $10 B) $15 C) $20 D) None of the above answers is correct.
The Grinch is now the mayor of your hometown, and he's still trying to steal Christmas. On the day after Thanksgiving, he announces a $25 tax on fresh Christmas trees. Tree farmers are angry to hear this because they have already delivered this season's
freshly cut trees to the tree lots in your town. You hear your neighbors planning to buy an artificial tree, and your family decides to drive to the next town to buy a tree. a . Who will bear the biggest share of the burden the first Christmas season this tax is in effect? Why? b. Will your answer change for subsequent Christmases? Why?
If government were to regulate a monopolistically competitive market by setting a single price, a consequence would be:
A. less output supplied to the market. B. higher prices. C. less product variety. D. All of these statements are true.
Assume that Nick and Faldo each has 2 hours available. If each person divides his time equally between the production of wheat and cloth, then total production is
A. 8 bushels of wheat and 15 yards of cloth. B. 16 bushels of wheat and 30 yards of cloth. C. 14 bushels of wheat and 27 yards of cloth. D. 28 bushels of wheat and 34 yards of cloth.