Microeconomics 3

Assignment Instructions

Answer all of the questions below in 2-3 paragraphs each.  Your final submission should be a minimum of two (2) double spaced typed pages. 

Be sure to save an electronic copy of your answers before submitting it to for grading.  Unless otherwise stated, you should answer in complete sentences, and be sure to use correct English, spelling, and grammar.  Sources must be cited in APA format.

Your response should be a minimum of two (2) double-spaced pages; refer to the Length and Formatting instructions for additional details.

1.What determines a household’s consumption possibilities?25 Points2.How would you answer someone who says that marginal utility theory is useless because utility cannot be observed?25 Points3.What is consumer surplus? How is consumer surplus calculated?25 Points4.What is a firm and what is the fundamental economic problem that all firms face?25 Points

Length/Formatting Instructions

Length2 typed pages - double spaced (minimum)Font12 point Calibri fontProgram/File TypeSubmit in WordAttachmentsShould be pasted into the Word document if possible.Referencing systemAPA referencing system is necessary in assignments, especially material copied from the Internet