The principle that individuals and firms pick the activity level where the incremental benefit of that activity equals the incremental cost of that activity is known as the:
A. marginal principle.
B. principle of opportunity cost.
C. principle of diminishing returns.
D. spillover principle.
Answer: A
Economics
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If the marginal propensity to consume is 0.5 and disposable income decreases by $10,000 . by how much will consumption spending decrease?
a. $10,000 b. $500 c. $50 d. $5,000 e. $9,524
Economics
Monopolists set prices
A. Without constraints since there is no competition. B. At the output where marginal revenue equals marginal cost. C. At the minimum of the long-run average total cost curve. D. On the marginal revenue curve.
Economics