If Maria spends a fixed dollar amount per week on movie rentals regardless of changes in the price, Maria's demand for movie rental can be considered:

Which of the following is true of units of utility?

a. Each unit is worth $1. b. They cannot be compared across consumers. c. They apply to goods but not to services. d. They do not exist for very wealthy individuals. e. They are negative for inferior goods.

Which of the following statements best reflects the production decision of a profit-maximizing firm in a competitive price-taker market when price falls below the minimum of average variable cost?

a. The firm will continue to produce to attempt to pay fixed costs. b. The firm will stop production to minimize its losses. c. The firm will stop production as soon as it is able to pay its sunk costs. d. The firm will continue to produce in the short run but will likely exit the market in the long run.