If a commodity is inexpensive and its total utility great,
a. it is an inferior good.
b. it is plentiful.
c. its marginal utility is high.
d. the ratio of price to marginal utility is very high.
b
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Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000 . and her expenses for the business were $15,000 . When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting
business. Julia's explicit costs are a. 0. b. $10,000. c. $15,000. d. $25,000.
A monopolist will choose to increase output when
a. market price increases. b. at all levels of output, marginal cost increases. c. at the present level of output, marginal revenue exceeds marginal cost. d. the demand curve shifts to the left.