By selecting a bundle where MRS = MRT, the consumer is saying
A) "I value my last unit of each good equally."
B) "I am willing to trade one good for the other at the same rate that I am required to do so."
C) "I will equate the amounts spent on all goods consumed."
D) All of the above.
B
You might also like to view...
A simple way of describing the social cost of monopoly is to say that it
A) produces too much. B) makes too much money. C) has too much political power. D) restricts output and charges a higher price than a perfectly competitive firm.
Which of the following is consistent with the monetarist view?
A. Changes in M may cause changes in V and Q in the long run. B. A reduction in taxes will leave the value of real output unaffected. C. Prices may be affected by increases in G or reductions in T. D. Monetary policy should be used to correct a shortfall in aggregate demand.