Sue is maximizing her utility. Her MUx/Px = 10 and MUy = 40. Then the price of Y must be
A. $1.
B. $4.
C. $10.
D. $40.
Answer: B
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An efficient point of production is
A) a point on the production possibilities curve. B) a point inside the production possibilities curve. C) the point where scarcity no longer exists. D) the point where we are currently producing.
Which of the following correctly describes the concept of free riding?
a. Making a public good available to all for no cost b. Using a public good but leaving it to others to pay for it c. Encouraging the use of city buses by not charging one day per week d. Using a public good without preventing others from using it
Producer surplus is represented by ______.
a. the area below the market supply curve and above the market price b. a sharp downward slope of the supply curve c. the area above the market supply curve and below the market price d. the point where the supply and demand curves intersect
Refer to the scenario above. If Maria borrows her parents' car and pays for only the gasoline, what is her total cost of driving to destination A?
A) $90 B) $250 C) $300 D) $340