For a consumer to maximize utility, he will choose the
a. point where the slope of the budget line equals the slope of the indifference curve.
b. any point where the budget line and indifference curve intersect.
c. point where he gets the most of the good he prefers most.
d. point where the marginal rate of substitution is greatest.
e. the point where marginal utility is zero for both goods
a
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Consumers who place a high value on a good are better off with pricing in the following order: 1)________; 2)________; 3)________
A) competitive market; perfect price discrimination; single-price monopoly B) competitive market; single-price monopoly; perfect price discrimination C) single-price monopoly; competitive market; perfect price discrimination D) Unable to determine.
The equation E¥/£ = 100 means that:
a. one yen buys 10 pounds. b. 0.1 yen buys one pound. c. 10 yen buy one pound. d. 0.01 yen buys one pound.
Resources are efficiently allocated when production occurs at that output level where price:
A. Equals marginal cost B. Equals marginal revenue C. Is greatest over average cost D. Is equal to average total cost
A major factor contributing to the slow growth rate of less-developed economies is
A) the lack of well-defined and enforceable property rights. B) the lack of workers. C) the lack of natural resources. D) the high rate of illiteracy.