Refer to Table 10-3. The table above shows Lee's marginal utility from consuming ice cream cones and cans of Lime Fizz Soda. Select the phrase that completes the following statement
"We can determine the number of ice cream cones and cans of Lime Fizz Soda Lee should consume to maximize his utility
A) if we know the values of the marginal utility per dollar for ice cream cones and Lime Fizz Soda."
B) by adding up the marginal utilities for ice cream cones and Lime Fizz Soda."
C) if we know what Lee's income is."
D) if we know what Lee's income is and the price of an ice cream cone and the price of a can of Lime Fizz Soda."
D
You might also like to view...
A monopolistically competitive firm is operating at a short-run level of output where price is $21, average total cost is $15, marginal cost is $13, and marginal revenue is $13. In the short run this firm should
A. increase the level of output. B. decrease the level of output. C. make no change in the level of output. D. reduce product price.
One of the largest challenges with foreign aid today is:
A. finding ways to ensure it is going to the best uses possible. B. raising enough of it to have any significant impact on the market. C. countries' overreliance on it removing incentives to better themselves. D. severely diminishes some nations’ ability to help their own citizens.
A company X is unlikely to disclose its organizational chart to its competitor company Y to prevent leak of important strategic information about itself
Indicate whether the statement is true or false
Suppose that during a period of inflation, the Fed reduced its holdings of U.S. securities from $600 billion to $580 billion. This indicates that the Fed was
a. seeking to reduce the money supply to decrease inflation. b. trying to force Congress to decrease taxes. c. expanding the money supply and stimulating employment. d. expanding the money supply, even though the existing inflation suggested a restrictive policy would be more appropriate.