Alex has allocated his income in such a way that the marginal utility of the last unit of product X he consumes is 40 utils and that of the last unit of Y is 16 utils. If the unit price of X is $5, then the price of Y must be
A. $1 per unit.
B. $3 per unit.
C. $2 per unit.
D. $4 per unit.
Answer: C
You might also like to view...
While moving along a production possibilities frontier, the amount of labor ________, the amount of capital ________, and the level of technology ________
A) varies; varies; varies B) varies; is fixed; is fixed C) is fixed; is fixed; is fixed D) is fixed; is fixed; varies E) varies; is fixed; varies
If all of the firms in an oligopoly successfully collude and form a cartel, then total profit for the cartel is equal to what it would be if the market were a monopoly
a. True b. False Indicate whether the statement is true or false
Matrix organizations may
A. decrease influence costs. B. reduce functional supervision. C. increase influence costs. D. reduce employee focus on the overall business.
Suppose the banks in the Federal Reserve System have $1 billion in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is increased to 0.20, then excess reserves will:
A. Increase by $100 million. B. Increase by $200 million. C. Decrease by $100 million. D. Decrease by $200 million.