Author Question: If Lisa spends her income on veggie burgers and pints of soy milk and the price of veggie burgers is ... (Read 132 times)

misspop

  • Hero Member
  • *****
  • Posts: 540
If Lisa spends her income on veggie burgers and pints of soy milk and the price of veggie burgers is three times the price of a pint of soy milk, then when Lisa maximizes her utility she will buy
 
  A) three times as many pints of soy milk as veggie burgers.
  B) both goods until the marginal utility of veggie burgers is three times the marginal utility of soy milk.
  C) three times as many veggie burgers as pints of soy milk.
  D) both goods until the marginal utility of a pint of soy milk is three times the marginal utility of veggie burgers.

Question 2

Are the costs of utilities always fixed, always variable, or can they be both? Briefly explain.
 
  What will be an ideal response?


tofugiraffe

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

B

Answer to Question 2

For many firms, the cost of utilities can be a mixture of fixed and variable costs. For example, a store may keep its lights on and its outdoor signs lighted day and night. The cost of the electricity to keep these lights on would, therefore, be a fixed cost because the cost does not vary with the quantity of the product sold. On the other hand, if, for example, the store is a laundromat, then the more people who use the washers and dryers, the more electricity it uses. So, that part of its electric bill is a variable cost.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

For a complete list of videos, visit our video library