At Revolution Doughnuts in Fort Collins, Colorado, a cup of ...

[newbem]

At Revolution Doughnuts in Fort Collins, Colorado, a cup of coffee or a doughnut is 1. Suppose Hannah loves going to Revolution Doughnuts and usually buys 2 doughnuts and 1 cup of coffee.
 
  On the way to the shop, Hannah finds an extra 2 dollars in change in her car and buys an extra doughnut and cup of coffee. This means A) doughnuts are an inferior good and coffee is a normal good for Hannah.
  B) doughnuts are a normal good and coffee is an inferior good for Hannah.
  C) doughnuts and coffee are normal goods for Hannah.
  D) doughnuts and coffee are inferior goods for Hannah.

Question 2

A monopsony will hire another worker if the
 
  A) marginal cost of labor exceeds the value of marginal product.
  B) marginal cost of labor is less than the value of marginal product.
  C) marginal cost of labor is less than the wage rate.
  D) wage rate exceeds the value of marginal product.

[kjohnson]

Answer to Question 1

C

Answer to Question 2

B

[newbem]

Excellent

[cpetit11]

Gracias!