Bianca consumes apples and bananas and is in consumer equilibrium. The marginal utility of the last apple is 10 and the marginal utility of the last banana is 20. If the price of an apple is 0.50, then what is the price of a banana?
A) 0.10
B) 0.25
C) 0.50
D) 1.00
Question 2
The practice of the only seller in a market charging a price at the highest level that would still inflict a loss on a new entrant into the market is called
A) limit pricing.
B) collusive pricing.
C) agile pricing.
D) trigger pricing.
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