Microeconomics
Question #2 Consumer Demand. How to answer questions from a-g iii. I belive the MRS is 2y/x for B. But not sure
For normal goods which experience price changes, then the income effect: (i) Recognizes how higher money income influences demands for goods. (ii) Invalidates the diminishing marginal utility law. (iii) Offsets the substitution effect. (iv) Reinforces the substitution
Market demand curve for the Hormel’s canned Spam [that is, a processed pork product which is an inferior good for most of the people], would shift rightward as the effect of major increases in: (i) Publicity regarding high correlations among hea
Give the difference between corporate profit maximization and maximization of shareholder wealth?
Price discrimination implies: (1) charging different prices for identical goods that have identical production costs. (2) paying wages based on race or sex quite than productivity. (3) exploiting the working masses by charging the highest single price
Taxes on pure land rents: (1) especially distort economic behavior. (2) are forward shifted to consumers. (3) transfer income from the public treasury to private landowners. (4) are allocatively neutral relative to most alternative taxes. (5) are over
Short-run supply curve of a purely competitive firm is the positively sloped segment of: (a) its long run sales revenue curve. (b) its marginal fixed cost curve. (c) its average profits curve. (d) its average total cost curve. (e) its MC curve above t
What do you mean by the marginal cost of capital?
Monsieur Cournot has a monopoly on an artesian well from that flows tasty spring water along with medicinal properties. To ignore variable costs, he insists which customers bring their own pails as well as fill them individually. Cour
The best illustrations of monopoly power in the United States are possibly: (w) local public utility companies. (x) state university systems. (y) the national TV networks. (z) national defense firms. Hey friends pl
A successful strategy of product differentiation causes: (w) the demand curve to shrink and become more elastic. (x) the demand curve becomes perfectly elastic. (y) prices for close substitutes to equalize. (z) the marginal revenue curve to be below t
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