Diminishing marginal utility means a downward sloping total utility curve. True or false? Explain.
Indicate whether the statement is true or false
Ques. 2Signals are believable when the cost of sending a
A) false signal is known to be low.
B) false signal is known to be high.
C) true or false signal is known to be low.
D) true signal is known to be high.
Ques. 3In the above figure, an innovation that increases the demand for high-skilled workers and decreases the demand for low-skilled workers will
A) reduce the amount by which WH exceeds WL.
B) increase the amount by which WH exceeds WL.
C) shift the SH curve leftward.
D) shift the SL curve rightward.
Ques. 4In a perfectly competitive market that is in long-run equilibrium, a permanent leftward shift in the market demand curve
A) raises the price in the short run.
B) raises profits in the short run.
C) leads to new firms entering the market in the long run.
D) lowers the price at first but then raises it as firms leave the market.
Ques. 5A sales tax on sellers of a good shifts the demand curve leftward because the tax raises the price that consumers must pay.
Indicate whether the statement is true or false
Ques. 6If a firm spends 600 more on advertising, its
A) ATC and MC curves shift upward.
B) MC curve shifts upward and its ATC curve does not shift.
C) ATC curve shifts upward and its MC curve does not shift.
D) ATC curve shifts upward and its MC curve shifts downward.
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