If everyone in an economy buys and sells goods at market-wide prices:
A. people will pay the same prices, so everyone's marginal rate of substitution will be the same.
B. people will pay the same prices, but will have different marginal rates of substitution.
C. people will pay different prices, but will have the same marginal rates of substitution.
D. people will pay different prices and therefore will have different marginal rates of substitution.
A. people will pay the same prices, so everyone's marginal rate of substitution will be the same.
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Should a monopoly charge low introductory price in a two-period model?
A) Yes, if the extra profit in the second period is greater than the foregone in the first period. B) Yes, if the demand in the second period is greater than the demand in the first period. C) No. The first period profit is counted more. D) No. Profit maximization decisions should be made separately.
U.S. macroeconomic data show that a stable Phillips curve existed during the 1960s
a. True b. False Indicate whether the statement is true or false