Given the data in the above table, income of 13, a price of 1 for a bottle of water and 2 for a hamburger, what is the marginal utility per dollar spent on water and on hamburgers when the consumer is in consumer equilibrium?
A) 20 units of utility per dollar spent
B) 10 units of utility per dollar spent
C) 5 units of utility per dollar spent
D) 1 unit of utility per dollar spent
Question 2
Ernie's Earmuffs produces 200 earmuffs per year at a total cost of 2,000 and 400 of this cost is fixed. What is Ernie's total variable cost?
A) 2,400
B) 2,000
C) 1,600
D) 800
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