Consumer equilibrium occurs where the budget line is tangent to the:
A. lowest possible indifference curve.
B. highest possible indifference curve.
C. utility maximizing indifference curve.
D. utility equalization indifference curve.
Answer: B
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Refer to the figure below. If the equation of MC of unreported income is MC = 4 + 2X, and the MB of unreported income is MB = 44 - 3X, what will be the amount of unreported income? How much of a change will there be if enforcement becomes more strict, resulting in MC = 9 + 2X?
After analyzing his opponent, a tennis player decides to serve 10% of his serves to the left, 50% of his serves to the right, and 40% of his serves at the body of his opponent. This illustrates a
A) deterministic strategy. B) dominant strategy. C) mixed strategy. D) non-game theoretic problem.
Arbitrage is the act of buying at one place and selling at another place in order to profit from the price differences that exist between the two places.
Answer the following statement true (T) or false (F)
The demand curve for labor is negatively sloped only because the firm must lower its price if it wishes to sell more output
Indicate whether the statement is true or false