MGEA02H3 Study Guide - Midterm Guide: Average Variable Cost, Marginal Revenue, Marginal Cost

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA02H3
• Professor: All

Document Summary

Professor gordon cleveland: at 12 units of x, the opportunity cost of y is 2/3rds. The correct answer is (d): at 16 units of x, the opportunity cost of x is 8/3rds. The correct answer is (h): the utility function is maximized at 11. 55 units of x. The correct answer is (e): sherry cooper is warning about a recession, which will cause the economy to perform at less than its capacity because of a reduced demand for goods and services. She is warning about a move from a point like b or c to a point like a. Time: 90 minutes: new technologies may make the existing capital and labour resources of the economy more productive. This economic growth would push the production possibilities frontier outwards to allow the economy to reach a point like d. the correct answer is (c): p* and q* will both fall. The correct answer is (b): q* rises but we are uncertain about p*.