Jason buys only music downloads and food with his weekly income. In response to a decrease in the price of downloads, he buys more downloads and less food. As a result, we would expect:
a. the marginal utility of downloads to increase and the marginal utility of food to decrease.
b. the marginal utility of both downloads and food to remain unchanged

A fixed cost is one that

a. increases only when output increases b. has already been paid c. does not vary with output d. diminishes over time e. cannot be recovered with profit

The prisoners' dilemma is used to illustrate the basic idea that

a. oligopolistic firms would be better off if they collude, but each has an incentive to cheat on the collusive agreement. b. oligopolistic firms are always worse off when they collude. c. oligopolistic firms never have an incentive to cheat on collusive agreements, unlike prisoners. d. students who cheat on economics exams end up in jail.