When Homer has 5 doughnuts, his marginal value is 15¢ per doughnut. We can conclude that Homer
a. places a value of 3¢ on each doughnut he owns.
b. needs to purchase more than 5 doughnuts to reach his optimum.
c. receives 75¢ worth of total satisfaction from his 5 doughnuts.
d. would refuse to pay more than 15¢ for a sixth doughnut.
d. would refuse to pay more than 15¢ for a sixth doughnut.
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Refer to Figure 12-6. To maximize his profit, Jason should produce the rate of output indicated by point
A) d. B) b. C) e. D) a.
The idea of risk aversion
A) is at odds with the idea of insurance. B) help explain the profitability of insurance companies. C) has nothing to do with insurance companies. D) help explain the losses suffers by the insurance industry. E) help explain why insurance companies in the long run are zero profit companies.
Absolute advantage
What will be an ideal response?
Which of the following countries has not experienced hyperinflation in the twentieth century?
A. Germany
B. Russia
C. Argentina
D. United States