Suppose that your roommate comes back to the dormitory exclaiming about what a great deal she got on a new shirt that she would have purchased at the regular price for $35, but she bought on sale for $6. An appropriate response would be to
a. make an interpersonal comparison of utility and remark that the shirt is ugly and not worth even $6 to
you
b. suggest that your roommate is now enjoying $29 of consumer surplus
c. suggest that the shirt was on sale because it has a low marginal utility
d. suggest that your roommate's total utility from the shirt is 35 utils
e. suggest that your roommate's total utility from the shirt is at least $29
b. suggest that your roommate is now enjoying $29 of consumer surplus
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Efficient production occurs if a firm
A) cannot produce its current level of output with fewer inputs. B) given the quantity of inputs, cannot produce more output. C) maximizes profit. D) All of the above.
Which of the following lists represent leakages from the circular flow?
a. Government purchases, net taxes and household saving. b. Planned investment, net taxes and government purchases. c. Household saving and planned investment. d. Planned investment and net taxes. e. Household saving and net taxes.