At the utility maximizing level, the price of a shirt is $15 and the price of a trouser is $12 . At this level, the marginal utility derived from the shirt is 30 utils and the marginal utility derived from the trouser is _____
a. 24 utils
b. 30 utils
c. 25 utils
d. 22 utils
a
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Which of the following indexes is best suited to measure wage inflation?
a. The Producer Price Index b. The International Price Index c. The Employment Cost Index d. The Personal Consumption Expenditure Index
The major categories of federal government spending are
What will be an ideal response?
As compared to the market clearing price, the total amount of consumer surplus and producer surplus is
A) greater for a government-imposed price floor that is higher than that market clearing price. B) greater for a government-imposed price ceiling that is lower than that market clearing price. C) the same as a government-imposed price floor that is higher than that market clearing price. D) smaller for a government-imposed price ceiling that is lower than that market clearing price.
Which of the following is FALSE about a comparison between a perfectly competitive firm and a monopolistically competitive firm?
A. In the long run, the perfectly competitive firm will produce at the minimum of the average total cost curve, while the monopolistically competitive firm will produce to the left of the minimum of the average total cost curve. B. Both the perfectly competitive and monopolistically competitive firm will earn economic profits equal to zero in the long-run. C. A perfectly competitive firm has a horizontal demand curve, while a monopolistically competitive firm has a downward sloping demand curve. D. In the short run, a perfectly competitive firm will earn zero economic profits, while a monopolistically competitive firm will earn positive economic profits.