Sam Edison obtains a patent on his new invention: trinoculars. In the long run,
a. he can earn only a normal profit
b. he may suffer an economic loss and stop producing
c. his monopoly power guarantees him a positive economic profit
d. he will achieve productive efficiency
e. he will achieve allocative efficiency
B
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Consumers derive consumer surplus whenever
a. the monetary value of total utility equals total expenditure b. the monetary value of total utility is greater than total expenditure c. the monetary value of total utility is less than total expenditure d. marginal utility is greater than total utility e. marginal utility is less than total utility
A given change in disposable income would have the greatest effect on aggregate demand with which of the following marginal propensities to consume?
a. 0.4 b. 0.6 c. 0.8 d. 0.2