« previous next »

Author Question: According to the theory of utility maximization, a. people who buy tap water apparently feel the ... (Read 56 times)

EY67

  • Hero Member
  • *****
  • Posts: 531
on: Jul 1, 2018
According to the theory of utility maximization,
 a. people who buy tap water apparently feel the additional benefit (compared with bottled water) offsets the additional cost
  b. people who buy bottled water apparently feel the additional benefit (compared with tap water) offsets the additional cost
  c. the marginal utility of the last gallon of bottled water consumed exceeds the marginal utility of the first gallon of tap water consumed
  d. the marginal utility of bottled water exceeds the marginal utility of diamonds
  e. bottled water must be more expensive (per gallon) than tap water

Question 2

In purchasing diamonds and water, a consumer would maximize utility by
 a. dividing expenditure equally between those two goods
  b. equating the marginal utilities from each of those two goods
  c. equating average utility per diamond with average utility per unit of water
  d. equating the total utility per diamond with the total utility per unit of water
  e. equating marginal utility per dollar spent on each of those two goods


lkoler

  • Sr. Member
  • ****
  • Posts: 358
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

E


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

During the twentieth century, a variant of the metric system was used in Russia and France in which the base unit of mass was the tonne. Instead of kilograms, this system used millitonnes (mt).

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Water-conducting cells of the xylem. Water-conducting cells of the xylem.
Contact theory indicates that prejudice decreases and relations improve when individuals of ... Contact theory indicates that prejudice decreases and relations improve when individuals of ...
How water is used in homes How water is used in homes
Depleted ground water Depleted ground water
People with night eating syndrome may consume more than half their day's calories between 8 pm ... People with night eating syndrome may consume more than half their day's calories between 8 pm ...
Why do people hate mathematics? Why do people hate mathematics?
Video: Physiology of Asthma

For a complete list of videos, visit our video library