A utility-maximizing consumer will choose a collection of goods
a. represented by a point below her budget line
b. represented by a point above her budget line
c. for which the marginal utility from each good is the same
d. for which the marginal utility divided by the price is the same or each good
e. for which the total utility from each good is the same
D
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Which of the following would most likely reach the long run most rapidly?
a. a nuclear power plant b. a college c. a lumber mill d. a shopping mall e. a hot dog stand
According to the Coase theorem, if bargaining costs are small, then there will be an efficient solution to the problem of toxic waste
a. if the creator of the toxic waste is assigned the property rights b. if the victim of toxic waste is assigned the property rights c. regardless of which party is assigned the property rights d. if the property rights are shared equally between the creator and the victim of toxic waste e. in the form of a pollution tax
If the supply curve is perfectly elastic, then an increase in demand will: a. increase both the price and the quantity exchanged
b. increase the price but result in no change in the quantity exchanged. c. increase the quantity exchanged but result in no change in the price. d. decrease the price but not change the quantity exchanged.
If the marginal utilities of the first 4 candy bars consumed are 10, 12, 9, and 7, respectively, the total utility derived from consuming 3 candy bars is
a. 3 b. 9 c. 25 d. 31 e. Total utility cannot be derived from marginal utility. On the other hand, marginal utility can be derived from total utility.