Newspaper vending machines illustrate that publishers believe
a. the average utility of two identical papers is zero or less
b. the total utility from two identical newspapers is zero or less
c. the marginal utility of a second identical newspaper is zero or less
d. the marginal utility of a second identical newspaper is greater than the marginal utility of the first newspaper
e. the total utility from two identical newspapers is less than the total utility from the first newspaper
C
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If the marginal product of labor is less than the average product of labor, then the average product of labor is increasing.
Answer the following statement true (T) or false (F)
According to the Rybczynski theorem, in a two-good world, with constant product prices, growth in a country's endowment of any one input results in an increase in the production of the good which does not use this input intensively.
Answer the following statement true (T) or false (F)
Suppose Good Z is a normal good. Which of the following will increase the demand for Good Z?
A. an increase in the price of its complements B. an increase in the price of its substitutes C. a decrease in income D. a lower expected future relative price of Good Z
In a set of indifference curves, why do the indifference curves that lie to the right represent higher levels of utility?
What will be an ideal response?