Each price-quantity combination on a consumer's demand curve shows the utility-maximizing quantity at the given price
Indicate whether the statement is true or false
TRUE
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Where a firm generates beneficial externalities, society would be better off if
a. the firm produced a larger output level. b. the firm reduced its output level. c. a tax was levied on the firm equal to the dollar amount of the externalities. d. price was reduced below marginal private cost.
Consider two projects. The first project pays benefits of $90 today and nothing else. The second project pays nothing today, nothing one year from now, but $100 two years from now. Which project would be preferred if the discount rate were 0%? What if the rate increased to 10%?
What will be an ideal response?
Which of the books used at the FOMC meetings contains anecdotal information collect by the Federal Reserve Banks?
A. Both the Beigebook and Bluebook B. The Tealbook C. The Beigebook D. The Bluebook
Two investments, X and Y, have beta values of 0.1 and 3.0 respectively. Based on this we can claim that, relative to the market portfolio:
A. both have more nondiversifiable risk than the market portfolio. B. both have less nondiversifiable risk than the market portfolio. C. X has more nondiversifiable risk and Y has less nondiversifiable risk than the market portfolio. D. X has less nondiversifiable risk and Y has more nondiversifiable risk than the market portfolio.