Assume that Clara purchases a combination of products Y and Z such that, after she is done spending her limited income, MUy/Py = 25 and MUz/Pz= 15. Based on the equal marginal principle, Clara
A. is maximizing her total utility.
B. should have purchased less Y and less Z.
C. should have purchased more Y and less Z.
D. should have purchased less Y and more Z.
Answer: C
You might also like to view...
From the economic point of view, why will an avid downhill skier devote many hours to reading, comparing, and testing a new pair of ski boots but only a few hours to deciding who to vote for in the state senator race?
A) Ski boots are ultimately more important to society than state senators. B) He needs new ski boots; he does not need a new state senator. C) In his estimation, being highly informed about ski boots is a better use of his time compared to being highly informed about potential state senators. D) He is selfish.
Assume Brad worked as a contractor for a year and had revenues of $120,000 and explicit cost of $70,000 . If he could have been paid $80,000 working for a computer company, his accounting profit as a contractor was ____ and his economic profit was ____
a. $50,000 . -$30,000 b. $10,000 . $50,000 c. $40,000 . $50,000 d. $50,000 . $40,000
Protectionism is
a. the belief that a nation's industries should be protected from foreign competition b. the belief that a nation's consumers should be protected from foreign competition c. based on the idea that economies of scale are important d. consistent with absolute advantage, but not with comparative advantage e. the favored approach of pro-trade groups
The price elasticity of demand for labor equals
A) the percentage change in the price of labor divided by the percentage change in the supply of labor. B) the change in the quantity demanded of labor divided by the change in the price of labor. C) the slope of the demand curve for labor. D) the percentage change in the quantity demanded of labor divided by the percentage change in the price of labor.