The marginal rate of substitution ____ as one moves downward along the indifference curve
a. increase
b. remains constant
c. decreases
d. increases and then decreases
c
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Vault cash is a(an)
A) liability of the Fed and is counted as reserves. B) asset of the Fed and is counted as reserves. C) liability of the Fed and is not counted as reserves. D) asset of the Fed and is not counted as reserves.
Firms that anticipate hold-up, choose organizational or contractual forms
a. that give both parties the incentive to make relationship-specific investments b. that give both parties the incentive to exploit each other's positions c. that gives both parties an incentive to trade, even after the relationship-specific investments have been made d. Both A&C
Airline knows from exp. Vacation travel has elastic demand for travel whereas business travels have an inelastic demand for travel in order maximizes the airline should?
A. Offer everyone a discount to increase sales. B. Increase price to everyone. C. Try to increase price for vacation travelers and decrease price for business travelers. D. Try to decrease price for vacation travelers and increase price for business travelers. E. Ignore this information.
The Case in Point on the Simpsons indicated that even fictional characters face:
A) diminishing marginal product. B) opportunity costs. C) the fallacy of false cause. D) positive statements.