Refer to the figure below. If the relevant curves are MC1 and MB2, a rational consumer will acquire ________ units of information, the amount for which marginal benefit for information is ________ its marginal cost.

A. 5; equal to
B. 5; more than
C. 4; more than
D. 4; equal to

Answer: A

Economics

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If Tom's total utility from watching one more minute of television increases but the increase for each additional minute is smaller than the previous minute, he has diminishing marginal utility

Indicate whether the statement is true or false

Economics

Refer to the information above. By accelerator theory, net investment will remain above zero in the long run only so long as

A) expected sales are greater than v* times the capital stock. B) replacement investment is above zero. C) expected sales keep rising. D) expected sales do not fall. E) actual sales fall below expected sales.

Economics