Given the diagram below, which level of output should the entrepreneur choose?
A. Either X1 or X3 since the profit level will be the same
B. X3 since any increase in output will reduce profits
C. X1 since any decrease in output will reduce profits
D. X2 since at this level the difference between MR and MC is maximized
B. X3 since any increase in output will reduce profits
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When event B follows event A three times in succession, but people say B following A is "just a coincidence," they usually mean
A) it is highly improbable B will follow A a fourth time. B) it is more common for A to follow B. C) B following A is only a subjective opinion. D) there has not been sufficient observation to connect B positively with A. E) they aren't aware of any causal theory linking B to A.
If a consumer spends all of his or her income and the marginal utility per dollar is equal for all goods, then
A) marginal utility is maximized. B) total utility is maximized. C) a consumer could not be better off even with greater income. D) the proportion of income spent on each good must be equal.