Author Question: Jenny buys sodas and popcorn. Sodas sell for 1 and popcorn sells for 2 a bag. Currently she is in ... (Read 71 times)

Collmarie · **on:** Jun 29, 2018

Jenny buys sodas and popcorn. Sodas sell for 1 and popcorn sells for 2 a bag. Currently she is in consumer equilibrium, with the marginal utility from her last dollar spent on popcorn equal to 100 units of utility.

The marginal utility from her last dollar spent on sodas is A) 20 units of utility.
B) 30 units of utility.
C) 50 units of utility.
D) 100 units of utility.

Question 2

An advantage of the corporation over other forms of business organization is that

A) the owners have unlimited liability.
B) a corporation's profits are taxed only once.
C) large-scale, low-cost capital is more readily available.
D) the decision-making structure is simple.