In a competitive market, prices adjust until all consumers find themselves
A) maximizing utility.
B) on the contract curve.
C) happy with their original endowment.
D) with many opportunities to gain from additional exchange.
B
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The WaveHouse on Mission Beach in San Diego features the Bruticus Maximus, a ten foot wave, which tests the skills of even the most talented surf and wake board riders on the planet
WaveHouse is the only place in San Diego where this service is offered. You can ride B. Max for $40 for the first hour, $33 for the second hour, and $26 for the third hour. Why would WaveHouse charge different prices for each subsequent hour of riding? A) to capture consumer surplus among groups of buyers B) to capture consumer surplus among units of a good C) to create customer loyalty D) to encourage skill development
Refer to the table below. The consumption of which bar yields the greatest marginal utility?
The table below shows the utility schedule for a consumer of candy bars.
A. Third
B. Fourth
C. Sixth
D. Second