Grace maximizes her utility by consuming both gourmet cookies and ice cream. If the price of a dozen cookies is three times that of a pint of ice cream, we would expect that:
a. the total utility of a dozen cookies is three times that of a pint of ice cream
b. the total utility of a dozen cookies is one-third that of a pint of ice cream.
c. the marginal utility of the last dozen cookies is three times that of the last pint of ice cream.
d. the marginal utility of the last dozen cookies is one-third times that of the last pint of ice cream.
c
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Define price discrimination. What factors must be present in order for a firm to price discriminate? Why do firms price discriminate?
What will be an ideal response?
(Last Word) A caller to a radio talk show states that protesters against globalization are a collection of "anarchist punks, naïve college students, and trade union radicals." This is an example of:
A. the fallacy of composition. B. the economic perspective. C. loaded terminology. D. marginal analysis.