Maximum utility is achieved when
A. Total revenue is the greatest.
B. Marginal utility is zero.
C. The price elasticity of demand is 1.0.
D. Total utility equals marginal utility.
Answer: B
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Which of the following is TRUE?
A) When a market price allocates resources, everyone who is able to pay the price gets the resource. B) A command system works well when the lines of authority and responsibility are clear. C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by command. D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a market price.
Firms in monopolistic competition can achieve product differentiation by
A) expanding plant size. B) exploiting economies of scale in production. C) advertising special characteristics. D) setting the price equal to average revenue.
One of the series included among the lagging indicators is
A) the change in sensitive material prices. B) the index of industrial production. C) employees on non-agricultural payrolls. D) average duration of unemployment.
Which one of the following changes is consistent with a change in an economy's consumption function from C = $500 billion + 0.80Y to C = $700 billion + 0.80Y?
a. An increase in disposable income taxes. b. An increase in interest rates c. A decrease in permanent disposable income. d. An increase in wealth. e. An increase in savings.