Which of the following statements is true?
A) A budget constraint is the same for a consumer at all levels of income.
B) A budget constraint is a function of the income of the consumer and not the prices of the goods and services available for consumption.
C) A budget constraint quantifies the trade-offs that economic agents face while making decisions.
D) A budget constraint is based on the minimum amount of money that an economic agent can spend on goods and services.
C
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Markets tend to underallocate resources to the production of a good when
A) there are negative externalities. B) there are positive externalities. C) there are public goods produced. D) equilibrium occurs.
Advertising never makes sense for an oligopolistic firm
a. True b. False Indicate whether the statement is true or false