At a price of 5, 24 units of the good would be sold; at a price of 7, 25 units of output would be sold. The marginal revenue of the 25th unit of output is:
a. 14.
b. 55.
c. 6.
d. 168.
e. 175.
Question 2
If Mr. McLean thinks the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, and McLean is a utility-maximizing consumer, he should:
a. bowl less, so the marginal satisfaction from expenditures in this area will increase.
b. spend more on hamburgers, so total satisfaction from that activity will increase.
c. eliminate spending on hamburgers.
d. bowl more and spend less on hamburgers.
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