The price of a can of soft drink is $1.25 and the marginal utility of the second can consumed is 10 utils. The marginal utility of the third hotdog is 4 utils. You should only consume the third hotdog if the price of the hotdog is less than or equal to
A. $0.25.
B. $0.625.
C. $0.41.
D. $0.50.
Answer: D
Economics
You might also like to view...
Given the graph below, the competitive firm's supply curve is the:
A. MC curve above F
B. MC curve above G
C. MC curve above H
D. MC curve above J
Economics
Diminishing marginal returns means that the firm definitely is experiencing
A) diseconomies of scale. B) constant returns to scale. C) Both answers A and B are correct. D) Neither answer A nor B is correct.
Economics
Assuming a required reserve ratio of 5%, interest rate on reserves of 1%, and interest rate on loans of 6%, what is the effective cost of the reserve requirement on a $10,000 deposit?
A) 0.05% B) 0.25% C) 0.30% D) 1%
Economics
Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
Economics