In introducing the opportunity cost of time into the theory of consumer behavior, we find that, all else equal:
A. one should consume less of time-intensive goods.
B. one should consume more of time-intensive goods.
C. the consumer's equilibrium position is not altered.
D. the marginal utility derived from each product must be multiplied by consumption time in
determining equilibrium.
Answer: A
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Refer to Figure 9.5. If the government establishes a price floor of $2.50, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
Which of the following refers to a natural monopoly?
a. A monopoly resulting from government control b. A monopoly resulting from economies of scale c. A monopoly resulting from output leadership d. A monopoly resulting from a large advertising budget e. A monopoly resulting from trade restrictions