This topic contains a solution. Click here to go to the answer

Author Question: Suppose you have spent your entire budget and, for all the goods you purchase, the marginal ... (Read 58 times)

stephzh

  • Hero Member
  • *****
  • Posts: 556
Suppose you have spent your entire budget and, for all the goods you purchase, the marginal utilities per dollar spent are identical. Which of the following is true?
 a. You are being irrational.
  b. You can increase your utility by reallocating your income.
  c. You will reduce your utility if you allocate income in any other way.
  d. You are minimizing your marginal utility.
  e. You can avoid diminishing marginal utility.

Question 2

The law of diminishing marginal utility may be illustrated by a person
 a. buying additional goods after getting a pay raise
  b. eating more twinkies but enjoying them less
  c. giving some of income to a needy person
  d. who spends more hours studying than do his fellow students
  e. buying goods so long as their marginal utility is greater than zero



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Cheesycrackers

  • Sr. Member
  • ****
  • Posts: 333
Answer to Question 1

C

Answer to Question 2

B




stephzh

  • Member
  • Posts: 556
Reply 2 on: Jul 1, 2018
:D TYSM


lcapri7

  • Member
  • Posts: 350
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

For a complete list of videos, visit our video library