Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the
a. marginal utility of another haircut would be zero or negative
b. marginal utility of another haircut would increase
c. marginal utility of another haircut would be zero or positive
d. total utility of both haircuts would be zero or negative
e. total utility of both haircuts would be higher than just one haircut
A
You might also like to view...
Properties of long-run competitive equilibrium with free entry include:
A. an equilibrium price equal to the minimum MC. B. firms earning positive profits. C. active firms producing at their efficient scales of production. D. All of these are properties of long-run competitive equilibrium.
When agricultural production increases, the total amount paid for agricultural products tends to
a. increase because demand is price elastic b. decrease because demand is price elastic c. increase because demand is price inelastic d. decrease because demand is price inelastic e. remain constant because demand is price inelastic
A problem of adverse selection can be addressed by
A) by teaching ethics in business schools. B) creating a positive externality. C) government regulation. D) collecting more information.
?
Exhibit 8-3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
Consider Exhibit 8-3. Suppose GeneTech's patent expires and the market for the vaccine becomes perfectly competitive. Which of the following price and quantity combinations would be most likely?
A. $45 per dose and 100 doses per hour B. $40 per dose and 200 doses per hour C. $35 per dose and 300 doses per hour D. $28 per dose and 450 doses per hour