Cory gets 18, 23, and 25 units worth of total utility from consuming 10, 11, and 12 raw oysters, respectively, and the price per oyster is 25 cents. Thus, one can infer that Cory:
A. has consumed too many oysters.
B. is not maximizing his utility.
C. should not consume any more oysters.
D. is experiencing diminishing marginal utility.
Answer: D
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The above figure shows the domestic market for tomatoes. Suppose this market is isolated from global competition and there is a support price set at $16. In this figure, what area equals the consumer surplus?
A) area A + area B + area C B) area A + area F C) area C + area D + area E + area G D) area A E) area F
According to Gary Libecap and Ronald Johnson, which of the following was a positive outcome of fraudulently obtaining land by larger firms?
a. Fines charged to fraudulent companies provided substantial revenues for the federal government. b. Resources were transferred to companies that could take advantage of economies of scale. c. Conflicts between farmers and railroads were reduced. d. Legislators friendly to economic development were elected because of backing from the fraudulent companies.
The slope of an indifference curve is equal to the ratio of the ____ of the good on the horizontal axis to the ____ of the good on the vertical axis
a. marginal utility (MU); marginal utility (MU) b. total utility (TU); total utility (TU) c. marginal product (MP); marginal product (MP) d. price (P); total utility (TU)
Having a well-known brand name associated with high quality is
A. can take a long time to establish. B. is a value to consumers. C. can be costly to maintain. D. All of these statements are true.