Why are utils a useful unit of measure?
a. Utils demonstrate the relative levels of satisfaction a good delivers to multiple consumers.
b. Utils demonstrate the relative levels of satisfaction goods deliver to a given consumer.
c. Utils can be used to model the sometimes-irrational decisions consumers make.
d. Utils can be used to prove that marginal utility and total utility are independent of one another.
b. Utils demonstrate the relative levels of satisfaction goods deliver to a given consumer.
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According to the scenario above, in which of the following groups are all the people frictionally unemployed?
A) Rita and Darrelo B) Chris, Rita, and Thorton C) Rita and Jung D) Darrelo and Jung E) Jung
How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers
What will be an ideal response?
Refer to the payoff matrix below. Which is the equilibrium of the game using the Pareto criterion?
Healthy Snacks and Best Treats are two firms competing in the health food snacks market. Both are considering introducing a new health food snack made purely of dried power fruits. The payoff matrix shows their net economic profit in millions for the different strategies.
A) Best Treats Do Not Introduce and Healthy Snacks Introduce.
B) Best Treats Introduce and Healthy Snacks Introduce.
C) Best Treats Introduce and Healthy Snacks Do Not Introduce.
D) Best Treats Do Not Introduce and Healthy Snacks Do Not Introduce.
The figure below shows a firm that has two plants. Plant 1 has a marginal cost curve of mc1, plant 2 has a marginal cost curve of mc2, and the overall marginal cost curve is MC. Managers maximize their profit by producing ________ units at plant 1 and ________ units at plant 2.
A) 2 million; 4 million
B) 0; 5 million
C) 4 million; 5 million
D) None of the above answers is correct.