Author Question: If Sam has 80.00 each week to spend on tacos and magazines, and their respective prices are .50 per ... (Read 38 times)

Garrulous · **on:** Jun 29, 2018

If Sam has 80.00 each week to spend on tacos and magazines, and their respective prices are .50 per taco and 4.00 per magazine, which of the following equations represents his budget line?

A) 80.00 = .50/Qt + 4.00/Qm
B) 80.00 = Qt/Qm + .50 /4.00
C) 80.00 = .50(Qm) + 4.00(Qt)
D) 80.00 = .50(Qt) + 4.00(Qm)

Question 2

Increasing marginal returns to labor might occur at low levels of labor input because of

A) increasing average costs.
B) differing factor proportions.
C) increasing specialization of tasks.
D) decreasing use of machinery and increasing use of technology.