Assuming the properties of normal indifference curves, a consumer will maximize his utility where his indifference curve is just tangent to his budget constraint.
Answer the following statement true (T) or false (F)
True
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Productive efficiency occurs at the point where
A. consumer surplus exceeds producer surplus by the greatest amount. B. the production technique minimizes cost. C. the production technique minimizes economic surplus. D. marginal benefit exceeds marginal cost by the greatest amount.
Any change that affects the entire schedule relating the quantity of labor and the value of the marginal product of labor will ________, assuming all else equal
A) cause the labor demand curve to become vertical B) shift the labor demand curve C) cause a rotation in the labor demand curve D) be caused by a change in the wage rate
In the above figure, Brendan originally consumes at point A. If his income rises and compact discs are a normal good but haircuts are an inferior good then he will begin consuming at a point such as
A) E. B) B. C) C. D) D.
Which of the following is most likely to happen if the Federal Trade Commission (FTC) wins a suit against alleged violators of antitrust law?
a. The FTC will receive compensation up to three times the damage caused. b. The FTC will not be able to impose substantial penalties. c. The FTC will force firms to break up through dissolution. d. The FTC will force firms to merge together. e. The FTC will file criminal actions that may result in fines but not prison sentences.