Nick Lewis is a strict vegetarian and dislikes the sight and smell of meat products. He buys a raffle supporting the Josh Gottheil Memorial Fund for Lymphoma Research and wins the 3rd prize: a year's supply of hamburger meat. He is willing to trade with his meat-loving friends, and a trade ensues. This is because the

a. marginal utility of meat for them is positive and for Nick, it's negative
b. total utility of meat for them and for Nick is positive
c. MU/P of the goods his friends trade away is higher than their MU/P of meat
d. MU/P of meat for Nick is higher than the MU/P of the goods he gets for the meat
e. his friends have a negative total utility of meat, but wish to help Nick


A

Economics

You might also like to view...

If production displays increasing marginal returns, then

A) the firm must be adding new capital to keep boosting productivity. B) each new worker hired adds more to output than previous hires. C) total product reaches a maximum sooner than if production displayed decreasing returns. D) total product rises by a constant amount throughout.

Economics

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.

Economics

Analysis of the Great Depression indicates that

a. even though monetary and fiscal policies were highly expansionary, they were unable to offset the economic plunge. b. even though monetary policy was expansionary, restrictive fiscal policy dominated during the 1930s. c. a reduction in tax rates could not prevent the economic downturn from spiraling into a depression. d. the severity of the economic decline, if not its onset, was the result of perverse monetary, fiscal and regulatory policies.

Economics

Which of the following is not a key feature of monopolistic competition?

a. Excess capacity b. A markup of price over marginal cost c. Positive economic profits for firms in the long run d. Differentiated products among firms in the market

Economics