Shaniq buys only soda and pizza and is buying the amounts that maximize her utility. The marginal utility from a soda is 30 and the price of a soda is $2. The marginal utility from a slice of pizza is also 30. The price of a slice of pizza must be
A) $30.
B) $2.
C) $1.
D) some amount that cannot be calculated without more information.
B
You might also like to view...
If the demand curve for a good is horizontal, a tax is levied on this product is
A) split between the buyers and the sellers but not evenly so that either the buyer or the seller pays more. B) split evenly between the buyers and the sellers. C) paid entirely by buyers. D) paid entirely by sellers. E) not paid by either the buyers or the sellers.
A monopoly may breed inefficiency by reducing competition and restricting production
a. True b. False Indicate whether the statement is true or false
Game theory:
A. is more flexible than the standard supply/demand model. B. replaces the standard supply/demand model. C. replaces the monopoly model. D. is more restrictive than the standard supply/demand model.
For years, your neighbor insisted she had no desire to own a computer. Recently, however, she purchased one and says she did so because all her relatives have computers and she wants to exchange e-mail with them. Your neighbor's behavior is an example of
A. the impact of negative market feedback. B. limited-pricing behavior. C. a switching cost. D. a network effect.