This topic contains a solution. Click here to go to the answer

Author Question: Michelle spends all of her income on mangos and rice. Mangos cost 2 per pound and rice costs 1.50 ... (Read 113 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
Michelle spends all of her income on mangos and rice. Mangos cost 2 per pound and rice costs 1.50 per pound.
 
  If Michelle is spending all of her income and the marginal utility per dollar spent is 20 for the last pound of mangos purchased and 10 for the last pound of rice purchased, then A) Michelle is maximizing utility from her present consumption bundle.
  B) Michelle should buy more rice and fewer mangos in order to maximize utility.
  C) Michelle should buy more mangos and less rice to maximize utility.
  D) None of the above answers is correct.

Question 2

Given the budget line in the figure above, the combination of chips that is NOT affordable is
 
  A) a.
  B) b.
  C) c.
  D) d.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sarahjh

  • Sr. Member
  • ****
  • Posts: 370
Answer to Question 1

C

Answer to Question 2

C




Sufayan.ah

  • Member
  • Posts: 512
Reply 2 on: Jun 29, 2018
Wow, this really help


lkanara2

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

For a complete list of videos, visit our video library