« previous next »

Author Question: Assume that Sofia's marginal utility from pizza consumption is 10 utils and the price is 2.00 per ... (Read 64 times)

itsmyluck

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Assume that Sofia's marginal utility from pizza consumption is 10 utils and the price is 2.00 per slice. Further, assume that her marginal utility from scone consumption is 20 utils and the price is 3.00 per scone. Which of the following is true?
 a. With her existing budget she should increase her consumption of pizza.
 b. With her existing budget she should increase her consumption of scones.
 c. She is currently maximizing her utility and should not change the amount of consumption for either good with her current budget.
  d. If her budget increases, she should increase her consumption of pizza but not scones.
 e. If her budget increases, she should increase her consumption of scones but not pizza.

Question 2

A firm under any market structure maximizes profits at a point where:
 a. marginal revenue product is greater than marginal factor cost.
  b. marginal revenue product is equal to marginal factor cost.
  c. marginal revenue product is equal to zero.
  d. marginal factor cost is equal to zero.
  e. marginal revenue product is less than marginal factor cost.


Liamb2179

  • Sr. Member
  • ****
  • Posts: 365
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

b


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ... As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ...
A utility knife uses replaceable blades and can cut carpet and other materials. A utility knife uses replaceable blades and can cut carpet and other materials.
Real Price of Oil, 1861–2010 Real Price of Oil, 1861–2010
Assume z is a standard normal random variable. What is the value of z if the area to the right ... Assume z is a standard normal random variable. What is the value of z if the area to the right ...
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ... An archaeological sample contains 0.700 g of lead-206 and 2.144 g of uranium-238. Assume that ...
Video: Segmentation and migrating motility complexes & Gastroileal reflex

For a complete list of videos, visit our video library