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Author Question: When residential water users are charged a flat monthly rate for water, the marginal cost of an ... (Read 106 times)

Mr. Wonderful

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on: Jul 1, 2018
When residential water users are charged a flat monthly rate for water, the marginal cost of an extra thousand gallons of water to a household is zero.
 a. True
  b. False

Question 2

If MUx/Px > MUy/Py, the consumer can increase utility by buying less of good y, which means the MUy will rise.
 a. True
  b. False


skipfourms123

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

A


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