The reason that you don't drink five cups of coffee at breakfast is that
a. the marginal utility of extra cups of coffee eventually diminishes
b. most people cannot afford five cups
c. the total utility of coffee rises as you consume more cups
d. the price of coffee rises as you buy more cups
e. the marginal satisfaction derived from cups of coffee remains constant
A
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A change in monetary policy affects
A) consumption expenditure, government expenditures on goods and services, and net exports. B) consumption expenditure, productivity, and net exports. C) government expenditures on goods and services because it affects the government's budget balance. D) consumption expenditure, investment, and net exports. E) investment, government expenditures on goods and services, and net exports.
Refer to the scenario above. If the marginal cost of producing the last unit of the good is $40, Nash equilibrium will occur when both firms charge a price of ________
A) $20 B) $40 C) $60 D) $70