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.
This Black-browed Albatross has been hooked on a long-line.
Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
An upward-sloping spark line usually indicates a mechanical engine problem or a lean air–fuel ...
How to find the equation of a line that is parallel to a line passing through a point
Monitoring shows that many forms of air pollution have decreased
A melting profile shows the increase in UV absorption versus temperature