The law of demand (downward-sloping demand curve)is based on the idea of
a. maximum total utility
b. minimum marginal utility
c. total utility divided by quantity of the good consumed
d. law of diminishing marginal utility
e. consumers minimize total utility
D
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Which of the following is NOT one of the eight basic puzzles about financial structure?
A) Debt contracts are typically extremely complicated legal documents that place substantial restrictions on the behavior of the borrower. B) Indirect finance, which involves the activities of financial intermediaries, is many times more important than direct finance, in which businesses raise funds directly from lenders in financial markets. C) Collateral is a prevalent feature of debt contracts for both households and business. D) There is very little regulation of the financial system.
All of the following will cause the aggregate supply curve to shift to the right EXCEPT
A) discoveries of raw materials. B) a reduction in input prices. C) an increase in marginal tax rates. D) a reduction in international trade barriers.
When a firm's average total cost curve continually declines, the firm is a
a. government-created monopoly. b. natural monopoly. c. revenue monopoly. d. All of the above are correct.
Both a perfectly competitive firm and a monopolist:
a. maximize profit by setting marginal cost equal to marginal revenue. b. always earn an economic profit. c. are price takers. d. maximize profit by setting marginal cost equal to average total cost.