Refer to Variable Cost of Production. If the total cost of producing the sixth unit of output is $190, fixed costs must be

A consumer purchases housing (H) and spends the remainder of income on the composite good (C). The government is considering one of two policies. Policy A taxes housing by $50 per unit consumed

With the tax in place, the consumer purchases 100 units of housing. Policy B collects a lump-sum tax of $5,000 from the consumer's income. Compare the effects of the policies on the consumer's utility/well-being and the amount of housing and composite goods purchased.

Economists usually assume

a. that Americans' preferences are systematically different from Europeans b. that there are some features common to the preferences of a wide variety of people c. that everyone has the same preferences d. that everyone has the same preferences that they (the economists) do e. that individuals prefer to purchases goods rather than services