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Which of the following statements about marginal utility is correct?
a. When marginal utility is negative, an increase in the quantity will increase total utility.
b. When total utility is increasing, marginal utility will be negative.
c. When marginal utility is positive, an increase in quantity will decrease total utility.
d. When marginal utility is zero, an increase in quantity will leave total utility unchanged.
e. When marginal utility is decreasing, an increase in quantity will decrease total utility.
The common currency in Europe was created because (a) governments had come to the conclusion that the system of floating exchange rates floating exchange rates contributed to continuous trade imbalances, or because (b) they believed that a common cur..
What is brand loyalty? Name three products each for which you have (a) high brand loyalty and (b) low brand loyalty and explain why for each of the six products.
US imports oil at the world price, $55 per barrel. The domestic supply curve in barrels per day is S = 2500000 + 250000P with P in dollars. Domestic demand curve is D = 70,000,000 - 500000P. Draw the US demand and supply curves for oil and indicate h..
Q1-You decide to hedge your position in the stock and buy options at the fair market value , when strike prices of 60$. a) What is the value of the option premium to hedge your position
Do you think such a policy will increase demand for electronic appliances.
Suppose that P1=10 and Q1=20; P2=20 and Q2=10. Suppose that price elasticity of demand is -1 for P=4, Q=10. Calculate marginal revenue for this point on the demand curve. Suppose price elasticity of demand is equal to -2 at a price of 4. If you incre..
Suppose utility had been leaner in wealth would this person willing to pay anything more than the actuarially fair amount for insurance.
Suppose that the market for wheat is characterized by the following demand and supply relationships.
It is argued that high tech products will dominate trade in the twenty-first century. Does this mean emerging market countries will be left out of this development? Explain your reasoning.
Explain how will this trade affect incomes of capital owners and workers in wool industry in Australia. Apply your knowledge of an appropriate framework to illustrate this.
The higher the percentage of debentures, the greater the risk borne by each debenture, and thus the higher the required rate of return on the debentures.
In 1796, Gottfried Christoph Hartel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated costs functions to make productions decisions.
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