Author Question: Phyllis spends her income on beer and pretzels, and a six pack of beer costs the same as a bag of ... (Read 97 times)

dalyningkenk · **on:** Jun 30, 2018

Phyllis spends her income on beer and pretzels, and a six pack of beer costs the same as a bag of pretzels. If she is in consumer equilibrium, we know:
a. she buys the same quantities of six packs of beer and bags of pretzels.
b. she gets the same marginal utility from the last six pack of beer as from the last bag of pretzels.
c. she gets the same total utility from beer as she does from pretzels.
d. that all of the above are true.

Question 2

A firm is said to be a monopsonist if it is the sole seller of a commodity in the market.
a. True
b. False
Indicate whether the statement is true or false