Assume that an individual consumes only coffee and bagels and that the last cup of coffee yields 12 utils and the last bagel 6 utils. If the price of a cup of coffee is $1 and the price of the bagel is $.50, we can conclude that the:
a. consumer should consume more coffee and fewer bagels.
b. price of coffee is too high relative to bagels.
c. consumer should consume less coffee and more bagels.
d. consumer is in equilibrium.
d
Economics
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Nominal wages are assumed fixed in the short run because: a. workers have wages stated in their contracts
b. of minimum wage laws. c. workers are unaware of short-run changes in their real wages. d. all of the above are true. e. none of the above are true.
Economics
The opportunity cost of an economic action is
a. the value of the next best alternative that must be sacrificed b. an issue in normative economic theory c. the expense for the resources used plus the firm's profit d. the out-of-pocket cost e. the option to pay a reduced fee for the action
Economics