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If marginal utility is zero,
total utility increases at a decreasing rate.
total utility is at a maximum.
total utility increases at an increasing rate.
people will not consume the good even if the price is zero
The study that estimates that in the United States the multiplier value is equal to 1.62, is carried out by----
The firm increases its entire size until it makes 30,000 units a week. What would total cost be if the firm faces constant returns to scale?
“The high price of gasoline is hurting our economy” said Mark Kirsch, a trucker in April of 2008 when Gasoline prices were at all-time highs due to $100/bbl. + oil prices. “Its hurting middle class people.” Explain to truck drivers why a government i..
politicians are often heard saying that tuition at state universities should be kept low to make education equally
The student investigated the pricing of oil and gasoline. The study included a comparison of 2014 prices to 2015 prices. Explain the differences observed by means of supply and demand theory. What happened to cause the fall of oil and gasoline prices..
What recommendations have been made to bring deficit spending under control? Which of the proposals do you think holds the most promises? Explain your rationale.
The U.S. Economy passed through what has now come to be known as 'The Great Recession'. The government and the Federal Reserve responded with different fiscal and monetary policies. Identify these Monetary and Fiscal policies implemented by the Feder..
A monopoly consumer durable company faces a demand curve (in $) for its branded product described by P = 20 - 3Q. Its average variable cost equals $2 everywhere, up to its capacity level of 20 units of output. Fixed costs are equal to $10. There is n..
Explain when Bank of Maryland will exercise the option. What is Bank of Maryland's break-even 60-day spot price on the option contracts? On the futures contracts.
Suppose an individual faces employment risk of the following form: Her employment is subject to business cycles in which she faces the risk of a layoff with probability 10%. When she is employed, she receives an income of $100. She earns nothing when..
The Dominion Freight Company has invested $50,000 in a new sorting machine that is expected to produce a return of $7,500 per year for the next 10 years. At a 7% annual interest rate, is this investment worthwhile?
The Economic Policy Institute periodically issues reports on wages of entry-level workers. The institute reported that entry-level wages for male college graduates were $21.68 per hour and for female college graduates were $18.80 per hour in 2011.
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