« previous next »

Author Question: Monopolistically competitive firms constantly develop new products in an effort to A) make the ... (Read 121 times)

luvbio

  • Hero Member
  • *****
  • Posts: 623
on: Jun 29, 2018
Monopolistically competitive firms constantly develop new products in an effort to
 
  A) make the demand for their product more elastic.
  B) increase the demand for their product.
  C) increase the marginal cost of their product.
  D) None of the above are correct.

Question 2

For a consumer, the marginal utility of good A is 25 and its price is 5. The marginal utility of good B is 60 and its price is 12. The consumer has allocated his entire budget. Is this consumer maximizing his total utility? Explain your answer.
 
  What will be an ideal response?


scikid

  • Sr. Member
  • ****
  • Posts: 300
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Yes, the consumer is maximizing his utility. He has allocated his entire budget and he is consuming the combination of goods A and B such that the marginal utility per dollar from each is the same.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Polyps and polyposis. A polyp is a protruding growth from a mucous membrane lining a hollow organ. I Polyps and polyposis. A polyp is a protruding growth from a mucous membrane lining a hollow organ. I
By age 3, children develop scripts for common events such as eating at a restaurant. By age 3, children develop scripts for common events such as eating at a restaurant.
Selected Natural Products Selected Natural Products
Competitive enzyme immunoassay. (a) Shows the uninhibited reaction and (b) shows the inhibited ... Competitive enzyme immunoassay. (a) Shows the uninhibited reaction and (b) shows the inhibited ...
Competitive firms and maximization Competitive firms and maximization
Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ... Jane was due to make loan payments of S1872 nine months ago, S3074 five month ago, and S498 in ...
Video: Net filtration pressure and lymph formation, edema & blood velocity

For a complete list of videos, visit our video library