According to the Application, one factor which was responsible for roughly one-fifth of hybrid vehicles purchased in 2007 was a federal subsidy of up to $3,400 per hybrid vehicle
The increase in sales due to this subsidy is an example of which element of the economic way of thinking?
A) responding to incentives B) using assumptions to simplify
C) thinking at the margin D) isolating variables
A
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Which of the following rules is most consistent with profit maximization?
a. expand output when MR < MC b. reduce output when MR > MC c. expand output when TR > TC d. reduce output when TR > TC e. expand output when MR > MC
The budget line shows:
A. the amount of product A that a consumer is willing to give up to obtain one more unit of product B. B. all possible combinations of two goods that can be purchased, given money income and the prices of the goods. C. the minimum amount of two goods that a consumer can purchase with a specific money income. D. all possible combinations of two goods that yield the same level of utility to the consumer.