Author Question: Sarah consumes pizzas and hamburgers. The price of a hamburger is 1 and the marginal utility from ... (Read 108 times)

luvbio · **on:** Jun 29, 2018

Sarah consumes pizzas and hamburgers. The price of a hamburger is 1 and the marginal utility from her last hamburger is 5. Let Pp be the price of a pizza and MUp be the marginal utility of pizzas.

In consumer equilibrium, the ratio MUp/Pp for Sarah's last pizza must equal A) 0.2.
B) 1.0.
C) 5.0.
D) infinity.

Question 2

A museum is NOT a public good if

A) there can be no congestion.
B) the museum receives donations from members of the public.
C) an entry fee is charged and people are denied entry if they do not pay.
D) the general public typically does not go to the museum.