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 111 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
Gracias!

amandanbreshears

  • Member
  • Posts: 320
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

Oxytocin is recommended only for pregnancies that have a medical reason for inducing labor (such as eclampsia) and is not recommended for elective procedures or for making the birthing process more convenient.

Wild Basil Wild Basil
Wild Basil Wild Basil
Consuming Lithosphere at Convergent Plate Boundaries Consuming Lithosphere at Convergent Plate Boundaries
Profit-maximizing Chart Profit-maximizing Chart
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Video: Carbohydrate digestion (brush border enzymes, end products) & Carb absorption (fructose, galactose)

For a complete list of videos, visit our video library