Author Question: Liane maximizes her total utility when she allocates all of her available income such that the ... (Read 46 times)

gbarreiro · **on:** Jun 29, 2018

Liane maximizes her total utility when she allocates all of her available income such that the marginal utility per dollar spent on each good ________.

A) is diminishing
B) is maximized
C) is the same
D) is increasing

Question 2

If the market for diamonds is a monopoly, then

A) there is an inefficient amount of resources allocated to the diamond market.
B) the prices of diamonds are too low.
C) diamond production is at the amount where the marginal social benefit equals the marginal social cost.
D) the diamond market is efficient.