On a graph we draw indifference curves to illustrate Steven's preferences for steak and broccoli. If two of Steven's indifference curves cross, then it cannot be the case that Steven
a. regards steak and broccoli as complements.
b. spends more of his income on steak than on broccoli.
c. likes steak and likes broccoli.
d. always prefers more steak to less steak and more broccoli to less broccoli.
d
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Exhibit 7-9 A firm's cost and marginal revenue curves
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In Exhibit 7-9, product price in this market is fixed at $7. This firm is currently operating where MR = MC. What do you advise this firm to do?
A. This firm should shut down. B. This firm could increase profits by increasing output. C. This firm could increase profits by decreasing output. D. This firm should increase price.
If government were to regulate a monopolistically competitive market by setting a single price, a consequence would be:
A. less product variety. B. lower prices in those markets. C. more output supplied to the market. D. All of these statements are true.