Assume you have an income of $200 and you can only purchase two goods – good A and good B
If the price of good A and B are $1 and $2 how much of each good can purchase? Assume that the price of good A falls why would you now consider not only consuming more of good A but also more of good B? What's going on that might cause this behavioral response?
You can purchase 200 units of good A and 100 units of good B. If the price of good Afell you not only would be interested in buying more of good A but you may also wishto purchase more of good B as well since you now have more real income because of good A's price decline.
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If the cost of the capital is 9%, is the investment feasible?
a. Yes because the NPV>0 b. Yes because the NPV=0 c. No because the NPV<0 d. Need information on the marginal benefits and costs
The law of diminishing marginal product indicates that
A) average product will eventually decrease. B) marginal product will eventually decrease. C) total product will eventually decrease. D) resources are inefficient.