Author Question: Bananas cost about 1 a pound and ground beef costs about 3 a pound. If Jenna has 18 to spend on ... (Read 353 times)

rayancarla1 · **on:** Jun 29, 2018

Bananas cost about 1 a pound and ground beef costs about 3 a pound. If Jenna has 18 to spend on groceries and she only buys bananas and beef, which of the following is a possible combination of these goods that could maximize her total utility?

A) 18 lbs of bananas and 6 lbs of beef
B) 10 lbs of bananas and 8 lbs of beef
C) 8 lbs of bananas and 3 lbs of beef
D) 3 lbs of bananas and 5 lbs of beef

Question 2

Regulation of a natural monopoly will maximize the sum of consumer surplus and producer surplus if the firm is regulated with

A) an average cost pricing rule.
B) a marginal cost pricing rule.
C) rate of return regulation.
D) All of the above answers are correct.