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Author Question: The above figure shows Jane's budget line and two of her indifference curves. If the price of a ... (Read 116 times)

stephzh

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on: Jun 29, 2018
The above figure shows Jane's budget line and two of her indifference curves. If the price of a lobster dinner falls so that Jane can now purchase the combination represented by Point B, Jane would experience
 
  A) an increase in the opportunity cost of a lobster dinner.
  B) no change in her marginal rate of substitution.
  C) an income and a substitution effect.
  D) Both answers B and C are correct.

Question 2

A natural monopoly occurs when
 
  A) one firm owns all the vital resources needed to produce a particular good.
  B) economies of scale allow one firm to supply the entire market at the lowest possible cost.
  C) a few firms collude to act as a single firm.
  D) one firm captures all the consumer surplus.


rleezy04

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Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


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stephzh

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Reply #2 on: Jun 29, 2018
Correct answers!


rleezy04

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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