An indifference curve shows _____
a. the relationship between total and marginal utility
b. the relationship between the quantity of a good and the maximum attainable satisfaction
c. the various combinations of two goods that give a consumer the same amount of satisfaction
d. the relationship between the price and quantity of a good that a consumer is able to purchase
e. that the quantities of a good that give a consumer maximum satisfaction are directly related to price
c
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Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?
If Noah thinks the last dollar spent on belts yields more satisfaction than the last dollar spent on socks, and Smith is a utility-maximizing consumer, he should
a. decrease his spending on socks. b. decrease his spending on socks and increase his spending on belts. c. increase his spending on belts. d. increase his spending on socks and decrease his spending on belts.