Just as indifference maps represent consumer tastes, so isoquant maps represent a producer tastes.
Answer the following statement true (T) or false (F)
False
Rationale: Isoquants represent the technological constraint a producer faces, not her tastes.
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If a market is subject to a positive externality,
A) the demand curve reflecting social benefit will be to the right of the demand curve representing private benefit. B) there is only one demand curve. C) the demand curve reflecting social benefit will be to the left of the demand curve representing private benefit. D) private benefit will exceed social benefit.
Economic analysis assumes that
a. individuals act only out of selfish motives. b. although individuals are at times selfish and at times unselfish, only their selfish actions may be predicted. c. people are basically humanitarian, and their actions are, therefore, impossible to predict. d. changes in the personal benefits and costs associated with a choice will exert a predictable influence on human behavior.