Suppose that Dave has 200 to spend per week and he buys only ...

[cabate]

Suppose that Dave has 200 to spend per week and he buys only magazines and pizza. The price of a pizza is 10 and the price of a magazine is 5. What is Dave's real income in terms of magazines?
 
  A) 20
  B) 40
  C) 200
  D) 10

Question 2

The law of diminishing returns occurs because
 
  A) the marginal product of an additional worker is greater than the marginal product of the previous worker.
  B) the marginal product of a variable input, such as labor, depends in part on the amount of fixed inputs, such as capital.
  C) total production decreases as more of the variable inputs are used.
  D) adding more and more workers leads to a decrease in the quantity of capital.

[TINA]

Answer to Question 1

B

Answer to Question 2

B

[cabate]

Excellent

[sailorcrescent]

Gracias!