Derek has 1 to spend at the grocery store. An apple, an orange, ...

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Derek has 1 to spend at the grocery store. An apple, an orange, and a banana cost 0.50 each. If Derek's MUA/PA (ratio of marginal utility to price) of an apple is 45, MUO/PO of an orange is 38, and MUB/PB of a banana is 52, he will purchase a(n) _____ first and a(n) _____ second.
 a. apple; orange
  b. orange; apple
  c. banana; orange
  d. banana; apple
  e. orange; banana

Question 2

Luke realizes that his space taxi service is operating in the region of diminishing marginal product. As he provides more taxi service in the short run, what will happen to the marginal cost of providing the additional service?
 a. It is impossible to say anything about marginal cost with the information provided.
  b. Marginal cost will decrease.
 c. Marginal cost will increase.
 d. Marginal cost will stay the same.

[kescobar@64]

Answer to Question 1

d

Answer to Question 2

c

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Excellent

[komodo7]

Gracias!