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Microeconomics

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 households consumption possibilities?    25 Points
2.    How would you answer someone who says that marginal utility theory is useless because utility cannot be observed?    25 Points
3.    What is consumer surplus? How is consumer surplus calculated?    25 Points
4.    What is a firm and what is the fundamental economic problem that all firms face?    25 Points

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