This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last ... (Read 62 times)

Themember4

  • Hero Member
  • *****
  • Posts: 538
on: Jul 1, 2018
Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last crumpet was 32 units of utility and the prices of tea and crumpets are 4 and 8, respectively, what was the marginal utility of the last cup of tea Basil consumed?
 a. 2 units of utility
  b. 12 units of utility
  c. 6
  d. 128 units of utility
  e. 16 units of utility

Question 2

Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of his last cup of tea was 24 units of utility and that of his last crumpet was 6 units of utility, which of the following is true?
 a. The price of tea is six times the price of crumpets.
  b. The price of crumpets is four times the price of tea.
  c. The prices of tea and crumpets are equal.
  d. The price of tea is four times the price of crumpets.
  e. The MU of the next cup of tea is less than the MU of the next crumpet.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lindahyatt42

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 1, 2018
Answer to Question 1

E

Answer to Question 2

D


Themember4

  • Member
  • Posts: 538
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

mjenn52

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Basil Balm Basil Balm
Wild Basil Wild Basil
Consuming Lithosphere at Convergent Plate Boundaries Consuming Lithosphere at Convergent Plate Boundaries
A utility knife uses replaceable blades and can cut carpet and other materials. A utility knife uses replaceable blades and can cut carpet and other materials.
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Video: Nerve Impulse Transmission Animation

For a complete list of videos, visit our video library