The above figure shows your budget line and indifference curves. ...

[Deast7027]

The above figure shows your budget line and indifference curves. What quantities of gasoline and movie rentals would you choose?
 
  A) 25 gallons of gasoline and 15 movie rentals
  B) 10 gasoline and 10 movie rentals
  C) 20 gallons of gasoline and 5 movie rentals
  D) 15 gallons of gasoline and 8 movie rentals

Question 2

Which cost always increases as output increases?
 
  A) total cost
  B) marginal cost
  C) average total cost
  D) average fixed cost

[Smiles0805]

Answer to Question 1

C

Answer to Question 2

A