Elaine spends $10 a week on pizza and Pepsi. The price of pizza is $2 a slice and the price of a Pepsi is $2. The table shows Elaine's total utility from pizza and Pepsi
Elaine maximizes her total utility by buying ________ slices of pizza and ________ Pepsis a week. A) 5; 0
B) 0; 5
C) 3; 2
D) 2; 3
D
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The CPI in 2010 was 218, while the CPI in 1980 was 82. If you had $5,000 in 1980, its equivalent purchasing power in 2008 would be $10,850
Indicate whether the statement is true or false
You wish to buy only one CD. Use the rule of equal marginal utility per dollar to determine which one to purchase:
(a) Drake's latest CD for $15 which gives you 75 units of utility, or (b) Bob Dylan's "Shadows in the Night" for $10 that gives you 100 units of utility?
Regulators often raise prices instead of lowering them. This is designed to
a. prevent the exit of competitors. b. protect the consumer from cheap products. c. ensure high-quality products. d. ensure workers are adequately paid.
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. At Q = 1,000 . the firm's profit amounts to
a. -$200. b. $1,000. c. $3,000. d. $4,000.