Author Question: The rate at which a person is willing to give up a gallon of gasoline to get one more pound of ... (Read 37 times)

cookcarl · **on:** Jun 29, 2018

The rate at which a person is willing to give up a gallon of gasoline to get one more pound of coffee and remain on the same indifference curve is called his or her

A) relative cost of coffee in terms of gasoline.
B) indifference cost of coffee.
C) personal price of coffee.
D) marginal rate of substitution.

Question 2

Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. Interlace's profit maximizing level of output is

A) 30,000 bottles.
B) 50,000 bottles
C) 100,000 bottles
D) 0; that is, the firm shuts down.