This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last ... (Read 79 times)

Themember4

  • Hero Member
  • *****
  • Posts: 538
on: Jul 1, 2018
Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of the last crumpet was 32 units of utility and the prices of tea and crumpets are 4 and 8, respectively, what was the marginal utility of the last cup of tea Basil consumed?
 a. 2 units of utility
  b. 12 units of utility
  c. 6
  d. 128 units of utility
  e. 16 units of utility

Question 2

Basil is maximizing his utility from consuming tea and crumpets. If the marginal utility of his last cup of tea was 24 units of utility and that of his last crumpet was 6 units of utility, which of the following is true?
 a. The price of tea is six times the price of crumpets.
  b. The price of crumpets is four times the price of tea.
  c. The prices of tea and crumpets are equal.
  d. The price of tea is four times the price of crumpets.
  e. The MU of the next cup of tea is less than the MU of the next crumpet.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lindahyatt42

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 1, 2018
Answer to Question 1

E

Answer to Question 2

D


Themember4

  • Member
  • Posts: 538
Reply 2 on: Jul 1, 2018
Excellent

adammoses97

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

A graphical representation of the marginal value theorem. A graphical representation of the marginal value theorem.
Basil Balm Basil Balm
Wild Basil Wild Basil
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.
Consuming a Healthy Diet Consuming a Healthy Diet
Video: Negative Feedback Regulation of Blood Pressure

For a complete list of videos, visit our video library