The marginal principle implies that an individual should produce or consume where:
A. marginal benefit exceeds marginal cost.
B. marginal benefit is less than marginal cost.
C. marginal benefit equals marginal cost.
D. total benefit equals total cost.
Answer: C
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In 2008-2009, Iceland and several Baltic states increased their interest rates. One would expect which of the following?
a. U.S. bond prices will fall and the dollar will appreciate. b. U.S. bond prices will rise and the dollar will appreciate. c. U.S. bond prices will fall and the dollar will depreciate. d. U.S. bond prices will rise and the dollar will depreciate.
If V is constant, the rate of growth of M that is consistent with a stable price level is
A) zero. B) the rate of growth of PQ. C) the rate of growth of Q. D) the expected rate of inflation. E) none of the above
Octavia does not currently have a job, but she has applied for several jobs in the previous week. Eve is an unpaid stay-at-home mom who has not searched for work in recent years. Who does the Bureau of Labor Statistics count as "out of the labor force"?
a. Octavia but not Eve b. Eve but not Octavia c. both Octavia and Eve d. neither Octavia nor Eve
In a perfectly competitive market in the long run, which of the following is not correct?
A. Economic profits are zero. B. Firms are attempting to maximize profit. C. Firms are maximizing total revenue. D. There are no better uses for the firm's resources.