In the following graph, the price of capital is $100 per unit. If a firm decides that total cost must not exceed $3,500, what is the maximum amount of output it can produce?

What is the utility-maximizing rule?

What will be an ideal response?

Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect

a. income b. endowment c. substitution d. price e. scale