6) while eating at alex’s “pizza by the slice” restaurant, kara experiences diminishing
marginal utility. she gained 10 units of satisfaction from her first slice of pizza
consumed, and would only receive 5 units of satisfaction from consuming a second
slice. based on this information we can conclude that:
a.alex may have to lower the price to convince kara to buy a second slice.
b.kara will not eat a second slice, even if it is given to her at no charge.
c.kara will definitely want to buy a second slice of pizza.
d.even if kara buys a second slice, she will not buy a third slice.
7) suppose that, when producing 10 units of output, a firm’s avc is $22, its afc is $5, and
its mc is $30. this:
a.firm’s atc is $35.
b.firm’s atc is $57.
c.firm’s total cost is $270.
d.firm’s total cost is $30.
8) “backflows” occur when:
a.two countries send immigrants to each other in approximately equal numbers.
b.physical capital flows into a country that has lost labor due to migration.
c.immigrants send financial payments back to family in their country of origin.
d.migrants return to their home country.