In the long run, a perfectly competitive firm can
A) only make an economic profit.
B) only make zero economic profit.
C) only incur an economic loss.
D) make an economic profit, make zero economic profit, or incur an economic loss.
B
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Marylou, whose utility of wealth curve is shown in the figure above, faces two options. Option A yields $200 for sure. Option B has a 0.3 probability of yielding $100, and a 0.7 probability of yielding $300. Marylou, who is
A) picks option A. B) picks option B. C) is indifferent between option A and option B. D) needs more information to make a choice.
In consumer equilibrium, which of the following is true? a. The marginal utility from the consumption of each good is the same
b. The marginal utility from the consumption of each good is zero. c. The marginal utility from the consumption of the last dollar's worth of each good is the same. d. The total utility from the consumption of each good is the same.