Which of the following illustrates the law of diminishing marginal utility?
a. The marginal utility of Diane's second Coke is greater than the marginal utility of her third pretzel, other things constant.
b. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third pretzel, other things constant.
c. The marginal utility of Diane's second Coke is greater than the marginal utility of her third Coke, other things constant.
d. The total utility of one Coke is greater than the total utility of two Cokes, other things constant.
e. The marginal utility of Diane's second Coke is greater than the marginal utility of Ken's third Coke, other things constant.
C
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Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $20, how much economic profit does the firm make?
A) $0 B) $12 C) -$20 D) -$10
A monopolist's demand function is P = 1624 - 4Q, and its total cost function is
TC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is output produced and sold. a. At what level of output and sales (Q) and price (P) will total profits be maximized? b. At what level of output and sales (Q) and price (P) will total revenue be maximized? c. At what price (P) should the monopolist shut down?
An increase in the quantity of loanable funds traded means that
a. firms are borrowing less and investment decreases. b. firms are borrowing less and investment increases. c. firms are borrowing more and investment increases. d. firms are borrowing more and investment decreases.
If a five-year Treasury bond pays an interest of 2.5 percent and a five-year corporate bond pays an interest rate of 4.5 percent, then the interest rate spread on the corporate bond equals 2 percent.
Answer the following statement true (T) or false (F)