Mic/Mac 50-52

an excise tax will be paid mainly by producers when

the price elasticity of supply is low and the price elasticity of demand is high

what is an example of an implicit cost of going out for lunch

the value of the time you spent eating lunch

what is true regarding the equity and efficiency in competitive markets

there is often a trade-off between equity and efficiency

assume there are two goods, good X and good Y. good X costs $5 and good Y costs $10. If your income is $200, what combination of good X and good Y is on your budget line

0 X, and 20 Y

the optimal consumption rule states that total utility is maximized when all income is spent and

MU/P is equal for all goods

generally, each successive unit of a good consumed will cause marginal utility to

decrease

accounting profit equals total revenue minus depreciation and total

explicit cost only

what is an example of an implicit cost of attending college

forgone salary

what is considered when calculating economic profit but not accounting profit

implicit cost

a consumer is spending all of her income and receiving 100 utils from the last unit of good A and 80 utils from the last unit of good B. If the price of good A is $2 and the price of good B is $1, to maximize total utility the consumer should buy

more of good B

the optimal consumption bundle is always represented by a point

on the consumer's budget line