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

Author Question: Suppose there are 10 apples and 10 oranges in the economy. Joe is currently consuming 4 apples and 5 ... (Read 185 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
on: Jul 1, 2018
Suppose there are 10 apples and 10 oranges in the economy. Joe is currently consuming 4 apples and 5 oranges, and Jane is consuming 6 apples and 5 oranges.
 
  At this allocation, Joe's marginal utility of apples is 3, and his marginal utility of oranges is 5. Jane's marginal utility of apples is 6, and her marginal utility of oranges is 10. If the current price of apples is 4 and the current price of oranges is 5, then there is an: A) excess demand for apples and an excess supply of oranges.
  B) an excess demand for oranges and an excess supply of apples.
  C) equilibrium in the market with no excess supply or demand for either good.
  D) an excess supply of apples and oranges.

Question 2

Refer to Scenario 12.3. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly?
 
  A) 3
  B) 9
  C) 12
  D) 13.50
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mfedorka

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

A


tuffie

  • Member
  • Posts: 534
Reply 2 on: Jul 1, 2018
Gracias!

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Two moldy oranges. Two moldy oranges.
Consuming Lithosphere at Convergent Plate Boundaries Consuming Lithosphere at Convergent Plate Boundaries
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it. In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
This chart illustrates the four quadrants in which we can place the relationships between the state This chart illustrates the four quadrants in which we can place the relationships between the state
The apples of today are larger and sweeter than their ancestors, thanks to hundreds of years The apples of today are larger and sweeter than their ancestors, thanks to hundreds of years
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Lactation and Breast Feeding

For a complete list of videos, visit our video library