MPC Flashcards
1
Q
a profit maximising monopolist sets….
A
P=MR
2
Q
adverse selection is?
A
people who face the highest risks are the people most likely to buy insurance against these risks
3
Q
When the price of x rises, Marvin responds by changing his demand for x. The substitution effect is the part of this change that represents his change in demand
A
if his money income is held constant when the price of x
changes
