Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. Why is Jason not maximizing his utility at point B?
A. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog.
B. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog.
C. He is not spending his entire budget.
D. He is maximizing his utility at point B.
Answer: A
You might also like to view...
Under a flexible exchange rate system an increase in the value of a currency relative to other currencies is a called a ________ and under a fixed exchange rate system an increase in the official value of a currency is called a ________.
A. depreciation; devaluation B. depreciation; appreciation C. appreciation; revaluation D. revaluation; appreciation
In the foreign exchange market, the quantity U.S. dollars supplied is a function of:
A) the amount of imports and the level of capital outflows. B) the amount of exports and the level of capital outflows. C) the amount of exports and the level of capital inflows. D) none of the above.
. The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of
a. the quantity supplied minus the quantity demanded. b. surpluses, shortages, and quantity. c. goods, services, labor, and financial capital. d. price controls and equilibrium prices.
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:Q = aPbMc
where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and PR = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below: 
height="198" width="577" />Given the above, if tax revenue per capita (M) increases 5%, the estimated quantity of cement demanded will A. increase more than 1% but less than 5%. B. increase more than 5% but less than 10%. C. increase by less than 1%. D. increase more than 10%.