« previous next »

Author Question: Brandon receives a marginal utility of 5, 4, 3, 2, 1, and 0 from eating successive donuts. ... (Read 50 times)

newbem

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
Brandon receives a marginal utility of 5, 4, 3, 2, 1, and 0 from eating successive donuts. Successive cups of coffee provide him with 9, 8, 6, 4, 3, and 2 utils of marginal utility. Donuts cost 50 cents each, coffee costs 1 per cup, and Brandon has 3 to spend. Which of the following options will yield Brandon the greatest utility?
 a. six donuts
 b. four donuts and one cup of coffee
  c. two donuts and two cups of coffee
  d. four donuts and one cup of coffee

Question 2

If the ratio of marginal revenue product to marginal factor cost for labor is greater than that for capital, then:
 a. the producer can maximize profit by hiring more units of capital.
  b. the producer suffers losses by hiring more units of labor.
  c. the producer does not alter the resource allocation.
  d. the producer can maximize profit by hiring more units of labor.
  e. the producer will earn above normal profit by hiring less units of labor.


KKcool

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

A silver agouti guinea pig eating grass A silver agouti guinea pig eating grass
Cotton-top tamarin eating a grasshopper Cotton-top tamarin eating a grasshopper
Eating Breakfast Means More Energy and Fewer Calories throughout the Day Eating Breakfast Means More Energy and Fewer Calories throughout the Day
Eating a variety of foods from all food groups is the best strategy to meet your daily mineral needs Eating a variety of foods from all food groups is the best strategy to meet your daily mineral needs
Although the highest rates of disordered eating patterns occur among females, males are not immune Although the highest rates of disordered eating patterns occur among females, males are not immune
Eating calcium-rich foods daily assists with bone health, muscle contraction, and blood clotting Eating calcium-rich foods daily assists with bone health, muscle contraction, and blood clotting
Video: Bone tissue types - compact and spongy

For a complete list of videos, visit our video library