Author Question: Mary has 10 to spend each week on coffee, Qc and magazines, Qm. The price of a coffee is 1, and the ... (Read 72 times)

j.rubin · **on:** Jun 29, 2018

Mary has 10 to spend each week on coffee, Qc and magazines, Qm. The price of a coffee is 1, and the price of a magazine is 2. Mary's budget equation is ________.

A) Qm = 10 - Qc
B) Qm + Qc = 20
C) 1 Qc + 2 Qm = 10
D) Qm = 10 - 2 Qc

Question 2

An external benefit is a benefit that ________.

A) is enjoyed by someone other than the buyer of a good
B) always equals external cost
C) experiences increasing marginal returns
D) is greatest at the equilibrium point