Title: If good A has a marginal utility of 30 and a price of 5, and good B has a marginal utility of 10 and ... Post by: oicyunvme on Feb 27, 2018 If good A has a marginal utility of 30 and a price of 5, and good B has a marginal utility of 10 and a price of 2, then:
a. good A is a better buy than good B. b. good B is a better buy than good A. c. goods A and B are of equal value to this consumer. d. neither good A nor B is worth the money. e. goods A and B should both be purchased. QUESTION 2 At the level of output where the marginal cost and marginal revenue curves intersect, a monopolist's demand curve passes above its average total cost curve. The firm will: a. be able to make a pure economic profit. b. stay in operation in the short-run, but shut down. c. shut down in the short-run. d. increase its price. QUESTION 3 If a consumer allocates income between goods A and B, total utility is maximized when: a. the marginal utility of A = the marginal utility of B. b. the marginal utility of A = the marginal utility of B = 0. c. the price of A = price of B. d. marginal utility of A / price of A = marginal utility of B / price of B = 0. e. marginal utility of A / price of A = marginal utility of B / price of B. QUESTION 4 A monopoly will be maximizing profits if it is operating at the point where: a. price is at a maximum. b. average cost is at a minimum. c. average cost is at a maximum. d. marginal cost is at a minimum. e. marginal revenue = marginal cost. QUESTION 5 Georgia has a MU/P of 10 for tennis lessons, a MU/P of 6 for sewing lessons, and a U/P of 2 for cooking lessons. In order to maximize utility, she should: a. take more cooking lessons. b. take more sewing lessons. c. take more tennis lessons. d. stay with her current choices. e. take fewer lessons of each choice. Title: If good A has a marginal utility of 30 and a price of 5, and good B has a marginal utility of 10 and ... Post by: nampretty on Feb 27, 2018 Content hidden
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