A student is trying to decide whether to study for the upcoming exam or play video games. The optimal amount of time spent studying is:
a. where the total benefit of studying is equal to the total cost of studying.
b. where the marginal benefit of studying is equal to the total cost of studying.
c. where the marginal benefit of studying equals the marginal cost of studying.
d. where the total benefit of studying equals the total cost of studying.
c
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If you expect a general price increase of 5% this year and the price of the hamburgers you sell increases by 10%, you would conclude that the relative price of your good has
A) declined, and you would increase your output. B) declined, and you would decrease your output. C) increased, and you would increase your output. D) increased, and you would decrease your output.
A per unit subsidy increases both consumer and producer surplus, but results in a deadweight loss
Indicate whether the statement is true or false