Author Question: John either buys a steak or chicken when dining out. John's marginal utility for steak and chicken ... (Read 98 times)

Destiiny22 · **on:** Jun 29, 2018

John either buys a steak or chicken when dining out. John's marginal utility for steak and chicken is given in the above table.

If the price of a steak is 5 and the price of a chicken is 5 and John has 25 to spend on the two goods, what combination of steak and chicken will John consume to maximize his utility? A) 1 steak and 4 chickens
B) 3 steaks and 2 chickens
C) 4 steaks and 3 chickens
D) 5 steaks and 6 chickens

Question 2

Deadweight loss is the decrease in ________ from producing an inefficient amount of a product.

A) only consumer surplus
B) only producer surplus
C) consumer surplus and producer surplus
D) profit