Cash payments are generally preferable to in-kind payments when the utility of the transfer recipient is the only criterion because _____
a. it is cheaper to distribute in-kind benefits
b. cash is necessary for utility maximization
c. recipients know their utility functions better than anyone else
d. of diminishing marginal utility
c
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If a firm doubles its output in the long run and its unit costs of production decline, we can conclude that:
A. technological progress has occurred. B. economies of scale are being realized. C. the firm is encountering diminishing returns. D. diseconomies of scale are being encountered.
Suppose people believe that prices will continue to fall in the future, and so they put off buying things now. As a result, prices fall. In economics we refer to this as a(n):
A. precommitment strategy. B. self-confirming equilibrium. C. Nash equilibrium. D. endowment effect.