Author Question: Cheese is priced at 5 per pound and wine at 10 per bottle. A consumer who enjoys both cheese and ... (Read 234 times)

audragclark · **on:** Jun 30, 2018

Cheese is priced at 5 per pound and wine at 10 per bottle. A consumer who enjoys both cheese and wine will not be in consumer equilibrium until the marginal utility of a pound of cheese is:
a. four times that of wine.
b. one-fourth that of wine.
c. two times that of wine.
d. one-half that of wine.

Question 2

A monopolist hiring labor in a perfectly competitive resource market is faced with a:
a. perfectly elastic demand curve for labor.
b. horizontal marginal factor cost curve.
c. perfectly inelastic demand curve for labor.
d. vertical supply curve of labor.
e. positively sloped marginal factor cost curve.