Suppose that for Virginia the marginal benefit per dollar spent on make-up is less than the benefit per dollar spent on clothes. Virginia can always increase her utility by buying:
A. more make-up and fewer clothes.
B. less make-up and more clothes.
C. more of both goods.
D. Virginia is already maximizing utility.
Answer: B
You might also like to view...
Which of the following is an advantage of starting a new business as a corporation?
A) ease in setting up B) low expenses of legally organizing C) double taxation D) greater ability to raise funds
Economies of scale in nuclear power plants exist because of
A) more efficient plant management. B) a better understanding of the plant's idiosyncrasies, or learning-by-doing. C) nuclear power technology changes. D) both A and B.
Exhibit 8-3 Cost per unit curves
As shown in Exhibit 8-3, the firm will produce in the short run if the price is at least equal to:
A. $1.00 per unit (point A). B. $1.50 per unit (point B). C. $2.00 per unit (point C). D. $4.00 per unit (point D).
The economic incentive for price discrimination depends on:
A. a desire to evade antitrust legislation. B. differences among buyers' demand elasticities. C. differences among sellers' costs. D. prejudices of business managers.