In the theory of utility, it is assumed that marginal utility:
a. increases as the consumption of a product increases.
b. is always zero irrespective of any increase or decrease in consumption.
c. remains constant when consumption of a product increases.
d. diminishes as the consumption of a product increases.
e. remains constant when the consumption of a product decreases.
d
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Cost-push inflation is caused by supply shocks like higher oil prices and poor weather conditions
a. True b. False Indicate whether the statement is true or false
Obi-Wan is considering whether to buy a lightsaber. With probability 0.50 he will value the lightsaber at $4,000, and with probability 0.50 he will value it at $1,000. If new lightsabers sell for $2,500, then buying a new lightsaber is a:
A. fair gamble. B. less-than-fair gamble if Obi-Wan risk neutral. C. less-than-fair gamble. D. better-than-fair gamble.
An increase in demand, with no change in supply, will lead to ________ in equilibrium quantity and ________ in equilibrium price.
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
A cartel is a group of firms that attempts to
A) maximize joint revenue B) maximize joint profit C) behave independently D) increase consumer surplus