According to utility theory, a consumer is in equilibrium when:
a. total income is spent.
b. marginal utility per dollar spent for a good is maximized.
c. total utility per unit of a good is maximized.
d. total utility per dollar spent is equal for all goods.
e. marginal utility per dollar spent is equal for all goods.
e
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Assume someone organizes all farms in the nation into a single-price monopoly. What is the monopoly's marginal revenue curve?
A) It is a horizontal line at the competitive industry's price. B) It is a line that lies below the new monopoly's demand curve. C) It is a vertical line at the monopoly's chosen output level. D) It is identical to the demand curve for the monopolist's output. E) It is a line that lies above the new monopoly's demand curve.
All but one of the following people were awarded a Nobel prize for their contributions to experimental economics and their explorations of the influence fairness has on consumer decision-making. Which person did not receive a Nobel Prize for this work?
A) Vernon Smith B) Alan Krueger C) Daniel Kahneman D) Maurice Allais