If Fred's marginal utility of pizza equals 10 and his marginal utility of salad equals 2, then
A) he would give up 5 pizzas to get the next salad.
B) he would give up 5 salads to get the next pizza.
C) he will eat five times as much pizza as salad.
D) he will eat five times as much salad as pizza.
B
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Sheena gets her paycheck on the first day of every month and spends it over the month to purchase various goods and services. What are the functions that money is performing in this case?
What will be an ideal response?
If the price doubles and the quantity supplied also doubles, the price elasticity of supply for the good is
A) -1. B) 1. C) -2. D) 2. E) 100 percent.
An acquisition will not be profitable
a. In any circumstances b. As long as you paid lower than the company's discounted future profits c. Without a synergy that makes the company more valuable to you than to the current owner d. None of the above
A price-setting firm faces the following estimated demand and average variable cost functions:Qd = 800,000 - 2,000P + 0.7M + 4,000PRAVC = 500 - 0.03Q + 0.000001Q2where Qd is the quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $53. Total fixed cost is $2,600,000. What is the estimated marginal revenue function for the firm?
A. MR = 520 - 0.001Q B. MR = 1,600 - 0.004Q C. MR = 800 - 0.002Q D. MR = 800 - 0.004Q