Author Question: Peanuts are 3 per pound and cashew nuts are 5 per pound. If the marginal utility from consuming the ... (Read 111 times)

azncindy619 · **on:** Jun 30, 2018

Peanuts are 3 per pound and cashew nuts are 5 per pound. If the marginal utility from consuming the last pound of cashew nuts equals 15 utils, then the marginal utility from consuming the last pound of peanuts in consumer equilibrium should equal:
a. 18 utils.
b. 15 utils.
c. 9 utils.
d. 5 utils.

Question 2

Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for 6 per unit in a perfectly competitive market, then the marginal revenue product of this additional worker is:
a. 78.
b. 72.
c. 36.
d. 39.
e. 6.