Suppose the price of pizza falls to $1 per slice. Assuming that Tom's preferences continue to be those shown in the above table, and assuming that MU/P = 3 is still the point at which his consumer optimum is reached, how many slices will Tom now buy?
A. 1 slice
B. 2 slices
C. 3 slices
D. 4 slices
Answer: D
You might also like to view...
If a production process exhibits diminishing returns, then as output rises:
A. total fixed cost will eventually increase. B. total revenue will eventually decrease. C. marginal cost will eventually increase. D. average total cost will eventually decrease.
A consumer values a house at $525,000 and a producer values the same house at $485,000 . If the transaction is completed at $510,000 . what level of tax rate will result in unconsummated transaction?
a. 1% b. 5% c. 3% d. 2%
An economy’s rate of _______________ growth is closely linked to the growth rate of its GDP per capita.
a. domestic b. business c. technology d. productivity
When all market participants are price takers who have no influence over prices, the markets have
a. only a few buyers and sellers. b. numerous sellers but only a few buyers. c. numerous buyers but only a few sellers. d. numerous buyers and sellers.