Compared to a monopolist, the demand curve for a perfectly competitive firm will be
A) as elastic.
B) more elastic.
C) less elastic.
D) perfectly elastic.
Answer: B
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What will be an ideal response?
Ricky is in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods
A) as small as possible; all B) equal; all C) equal; normal D) maximized; all
The above figure shows the marginal benefits and marginal costs of a college education. If colleges receive a $5,000 subsidy, then enrollment equals
A) 0. B) 10 million. C) 15 million. D) 25 million.
A rising average cost implies that
a. marginal cost is equal to average cost b. marginal cost is above average cost c. marginal cost is below average cost d. none of the above