Author Question: The price of shrimp is 10.00 per pound and the price of lobster is 15.00 per pound. The marginal ... (Read 81 times)

moongchi · **on:** Jun 30, 2018

The price of shrimp is 10.00 per pound and the price of lobster is 15.00 per pound. The marginal utility to Mike of pound of shrimp consumed is 60 utils. If Mike maximizes his satisfaction by consuming both shrimp and lobster, we would expect the marginal utility of the last pound of lobster consumed to equal:
a. 40 utils
b. 60 utils
c. 90 utils
d. 150 utils

Question 2

A perfectly competitive employer of an input will maximize profits from the employment of the input by equating:
a. the value of the marginal product of the input with the price of the output.
b. the marginal product of the last unit of the input employed with the input price.
c. the input price with the price of the product produced.
d. the marginal revenue product of the input with the input price.
e. the marginal product of the last unit of the input employed with the price of the product produced.