Irrespective of whether she is at her optimum, Jenna's valuation of coffee relative to orange juice can be measured by
a. her marginal rate of substitution between coffee and orange juice.
b. the price of coffee relative to the price of orange juice.
c. the ratio of the quantity of coffee that she buys relative to the quantity of orange juice that she buys.
d. the ratio of the quantity of coffee supplied in the market to the quantity of orange juice supplied in the market.
a
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Which of the following is true when regulators require a natural monopolist to set price equal to marginal cost?
a. This policy results in a less than socially optimal allocation of resources. b. The marginal cost of producing the last unit sold exceeds the consumers' marginal value for that last unit. c. The monopolist will face recurring losses unless a subsidy is provided. d. The monopolist will earn a normal profit. e. The monopolist will earn more than a fair return.
In the 1950s, a traditional, thirty-year fixed-rate mortgage would typically have been
A. available to the borrower without a down payment and without documentation of income. B. securitized and sold to a consortium of foreign investors. C. held by the original lender or banker until it was paid off. D. all of the options are correct.