If a consumer allocates income between goods A and B, total utility is maximized when:
a. the marginal utility of A = the marginal utility of B.
b. the marginal utility of A = the marginal utility of B = 0.
c. the price of A = price of B.
d. marginal utility of A / price of A = marginal utility of B / price of B = 0.
e. marginal utility of A / price of A = marginal utility of B / price of B.
e
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A firm that engages in strategic behavior:
a. fits the definition of a natural monopoly. b. does not seek to maximize long-term profit. c. may attempt to influence the behavior of other firms. d. takes the market price as given, as does a perfectly competitive firm.
The financial statements of firms generally are audited by
A) employees of the firm being audited. B) employees of private accounting firms. C) the board of directors of the corporation being audited. D) employees of the federal government.