Eric is maximizing his total utility through his choices of two goods: clothes and food. His marginal utility of clothes is 60 and his marginal utility of food is 12 . The price of clothes is $20 . What must be the price of food?

Firms will borrow to finance capital expansion until the MRP of the investment equals the

a. MRP of labor. b. marginal cost of the finished good. c. marginal physical product of capital. d. interest payment charged for borrowing.

Subjective probabilities are based on ________ and ________ data.

A) best estimates; not on B) relative frequencies; not on C) relative frequencies; on D) best estimates; on