Homothetic tastes are always tastes over essential goods.
Answer the following statement true (T) or false (F)
False
Rationale: Tastes for perfect substitutes are homothetic -- but neither good is essential in that case.
Economics
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Explain why gasoline stations across the street from each other with large signs displaying their prices may "legally" jointly set monopoly prices
What will be an ideal response?
Economics
If your guest is serious when he said that he just could not get enough of the lasagna you cooked and that the more he ate the more he wanted, you would conclude that the marginal utility of lasagna for him was
A) positive. B) negative. C) zero. D) undefined.
Economics