Economists assume that households try to maximize utility and firms try to:
a. maximize profits.
b. maximize scale of operation.
c. maximize sales.
d. maximize capital usage.
a
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If Fred's marginal rate of substitution of salad for pizza equals 5, then
A) he would give up 5 pizzas to get the next salad. B) he would give up 5 salads to get the next pizza. C) he will eat five times as much pizza as salad. D) he will eat five times as much salad as pizza.
Refer to Figure 14.3. To maximize the number of workers hired, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
Firms in perfect competition have no control over
a. all of the following b. where to operate on their average total cost curves c. what price to charge d. how many inputs to use e. how much to produce
Which of the following situations results in a surplus of euros?
a. The dollar price of euros is higher than $1.50.
b. The dollar price of euros is equal to $1.50.
c. The dollar price of euros is slightly lower than $1.50.
d. The dollar price of euros is much lower than $1.50.