Which of the following is known to occur when the consumer equilibrium is achieved for someone at a carnival?
a. He has ample money in his carnival budget for additional rides.
b. The marginal utility of the last ride he took on the roller coaster, a $7 ride, is equal to the marginal utility of the last ride he took on the hammerhead, a $3 ride.
c. The marginal utility per dollar spent on the last roller coaster ride he took is equal to the marginal utility per dollar spent on the last hammerhead ride he took.
d. He continued to ride the roller coaster until his marginal utility was driven down to zero, and then he switched to the hammerhead and rode that until he became sick to his stomach. Thus he had to leave the carnival before spending all his budget, and missed seeing the man shot out of the cannon.
c
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Suppose Larry's Lariats produced 25,000 lassos and sold each for $10. What was the total revenue for the company?
A. $250,000 B. $25,000 C. $2,500 D. $2,500,000
Economists believe that production possibilities frontiers are often bowed because
a. trade-offs inevitably create unemployment. b. resources are not completely adaptable. c. opportunity costs are constant. d. of improvements in technology.
Country A can produce 50 units of beer or 80 units of pizzas. Country B can produce 100 units of beer or 100 units of pizzas. Which of the following statements is true?
A. Country B has an absolute advantage in both products. B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer. C. Country B has a comparative advantage in pizza and country A has a comparative advantage in beer. D. A and B.