If a consumer is maximizing utility and then the price of Good A increases:
a. the marginal utility from the consumption of Good A will fall
b. the marginal utility from the consumption of Good A will remain unchanged.
c. the marginal utility per dollar spent on Good A will decrease.
d. consumption of Good A will increase.
c
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To stay one step ahead of the forces of competition, a firm can adopt any one of these strategies except
a. Cost reduction b. Product differentiation c. Operating where marginal benefits equal marginal costs d. Develop non-fungible valuable resources
Which of the following is a characteristic of pure capitalism?
a. all resources are owned communally b. economic activity is coordinated by government decision makers c. the price system is used to guide resources to their highest-valued uses d. centralized economic planning is used to answer the basic economic questions e. individual choices are reflected only through collective decisions