Author Question: Gil can consume either pens or milkshakes. Both pens and milkshakes sell for 1. Gil finds that when ... (Read 176 times)

deesands · **on:** Jun 29, 2018

Gil can consume either pens or milkshakes. Both pens and milkshakes sell for 1. Gil finds that when his income is spent, his marginal utility of pens will be 10 while his marginal utility of milkshakes will be 8.

Gil could increase his utility without violating his budget by consuming A) more pens and fewer milkshakes.
B) more pens and more milkshakes.
C) fewer pens and fewer milkshakes.
D) fewer pens and more milkshakes.

Question 2

The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. What is the marginal social benefit from the 300th dozen doughnuts each day?

A) 10.00 per dozen
B) 8.00 per dozen
C) 6.00 per dozen
D) 4.00 per dozen