Author Question: The fact that Alice spends no money on travel: A) implies that she does not derive any ... (Read 71 times)

Sportsfan2111 · **on:** Jul 1, 2018

The fact that Alice spends no money on travel:

A) implies that she does not derive any satisfaction from travel.
B) implies that she is at a corner solution.
C) implies that her MRS does not equal the price ratio.
D) any of the above are possible.

Question 2

In Figure 5.1, the marginal utility of income is

A) increasing as income increases.
B) constant for all levels of income.
C) diminishes as income increases.
D) None of the above is necessarily correct.