Explain the utility maximizing rule in terms of hot dogs and hamburgers purchased at a ballgame
Please provide the best answer for the statement.
The utility maximizing rule states that to maximize their utility the consumer should spend his or her money income so that the last dollar spent on each product purchased yields the same marginal utility. In terms of hot dogs and hamburgers at a ballgame, the consumer should purchase a bundle of hot dogs and hamburgers such that the marginal utility of another hot dog is equal to the marginal utility of an additional hamburger.
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If the price of a product increases
A. total revenue will definitely decrease. B. total revenue will definitely increase. C. consumer surplus will decrease. D. consumer surplus will increase.
The purchase of more than ten percent of the shares of a foreign company is known as a(n)
A) World Bank investment. B) portfolio investment. C) foreign direct investment. D) International Monetary Fund (IMF) investment.
If the initial distribution of two goods between two people is Pareto optimal, which of the following statements is TRUE?
A) It is possible to reallocate the goods between the two people so as to increase the utility of both people. B) It is possible to reallocate the goods between the two people so as to increase the utility of one person without decreasing the utility of the other. C) It is possible to reallocate the goods between the two people so as to increase the utility of one person, but only at the expense of the other person. D) It is impossible to reallocate the goods between the two people so as to increase either person's utility. E) none of the above
Suppose Sally buys a Volvo because they are safe and, as a result, drives faster and pays less attention to other cars on the road. This is an example of
a. the winner's curse b. a positive externality c. irrational behavior d. moral hazard e. adverse selection