This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last ... (Read 125 times)

Themember4

  • Hero Member
  • *****
  • Posts: 538
on: Jul 1, 2018
Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last crumpet was 32 units of utility and the prices of tea and crumpets are 4 and 8, respectively, what was the marginal utility of the last cup of tea Basil consumed?
 a. 2 units of utility
  b. 12 units of utility
  c. 6
  d. 128 units of utility
  e. 16 units of utility

Question 2

Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of his last cup of tea was 24 units of utility and that of his last crumpet was 6 units of utility, which of the following is true?
 a. The price of tea is six times the price of crumpets.
  b. The price of crumpets is four times the price of tea.
  c. The prices of tea and crumpets are equal.
  d. The price of tea is four times the price of crumpets.
  e. The MU of the next cup of tea is less than the MU of the next crumpet.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lindahyatt42

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 1, 2018
Answer to Question 1

E

Answer to Question 2

D


Themember4

  • Member
  • Posts: 538
Reply 2 on: Jul 1, 2018
:D TYSM

jomama

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Basil Balm Basil Balm
Wild Basil Wild Basil
Consuming Lithosphere at Convergent Plate Boundaries Consuming Lithosphere at Convergent Plate Boundaries
Profit-maximizing Chart Profit-maximizing Chart
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Video: Medullary osmotic gradient: countercurrent multiplier, urea recycling & vasa recta countercurrent exchange

For a complete list of videos, visit our video library