« previous next »

Author Question: If Ellie Mae spends her income on possum and biscuits and the price of possum is three times the ... (Read 71 times)

mwit1967

  • Hero Member
  • *****
  • Posts: 501
on: Jul 1, 2018
If Ellie Mae spends her income on possum and biscuits and the price of possum is three times the price of biscuits, then when Ellie Mae maximizes total utility, she will buy
 a. equal quantities of possum and biscuits
  b. three times as much possum as biscuits
  c. three times as many biscuits as portions of possum
  d. biscuits and possum until the marginal utility of possum is three times the marginal utility of biscuits
  e. biscuits and possum until the marginal utility of biscuits is three times the marginal utility of possum

Question 2

Suppose that for Jason the marginal utility of 50-per-serving caviar is 100 and the marginal utility of 1-per-serving popcorn is 10 . For his snack, Jason should buy
 a. the caviar if he has the 50; otherwise the popcorn
  b. the caviar if he has the 50; otherwise nothing
  c. the popcorn, whether he has the 50 or not
  d. one serving each of the caviar and popcorn, if he has 51
  e. five servings of popcorn for each serving of caviar


stallen

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Normal oxygen sensor frequency is from about one to five times per second. Normal oxygen sensor frequency is from about one to five times per second.
Ten Leading Causes of Death in High-Income Countries, 2008 Ten Leading Causes of Death in High-Income Countries, 2008
How to create a price index to calculate inflation for a basket of goods How to create a price index to calculate inflation for a basket of goods
Relationship between Income Inequality and Sociopolitical Instability Relationship between Income Inequality and Sociopolitical Instability
Price of Computers, 1982–2010 Price of Computers, 1982–2010
The net price of an article is $79.84. What is the list price if a discount of 23% was allowed? The net price of an article is $79.84. What is the list price if a discount of 23% was allowed?
Video: Natural Selection, Species Isolation and Real World Example

For a complete list of videos, visit our video library