If a consumer is indifferent between 5 units of A and 8 units of B, then the consumer would:

a. also be indifferent between 4 units of A and 9 units of B.
b. also be indifferent between 8 units of A and 5 units of B.
c. prefer 6 units of A and 8 units of B.
d. give up 1 unit of A if he/she could acquire 2 units of B.
e. not trade product A in exchange for any units of product B.

c

Economics

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In the context of both positive externalities and public goods, briefly explain why private firms or individuals might fail to make expenditures or investments that would produce broad social benefits.

What will be an ideal response?

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If the Union threatens a strike, what is the firm's best response?

a. Bargain hard b. Accommodate c. Run d. Hide

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