Microeconomics is the branch of economics that deals with
A) highly aggregated markets or the entire economy.
B) the production side of the economy, exclusively.
C) the buying side of the economy, exclusively.
D) human behavior and choices as they relate to relatively small units --- an individual, a firm, an industry.
D
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Why might a system of marketable pollution permits lead to a higher concentration of polluted areas than would a command-and-control system?
What will be an ideal response?
If an industry has constant marginal and average costs, any shift in demand will eventually
A. result in a higher equilibrium price. B. be met by a smaller change in quantity supplied. C. make economic profits zero in the short run. D. be met by an equal change in quantity supplied, and equilibrium price will not change.
Ricardo eats 20 pieces of sushi on a Friday night. When he eats the 21st piece, he starts to feel nauseous and realizes he probably should not have eaten the last piece. This suggests that for Ricardo the
A. marginal utility of the 21st piece of sushi is negative. B. total utility of pieces of sushi is increasing. C. total utility of pieces of sushi is increasing by larger and larger increments. D. marginal utility of the 21st piece of sushi is positive and increasing.
State the law of diminishing marginal returns
What will be an ideal response?