Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.Table 19.3Michael's Utility ScheduleUnits of ColaTU of ColaMU of ColaUnits of PretzelsTU of PretzelsMU of Pretzels14040130302 322 2039624366164112 478 5124 584 Refer to Table 19.3. If Michael has $28 dollars to spend, why will three colas and four pretzels not be optimal?
A. This combination is affordable but does not maximize utility.
B. This combination has less total utility.
C. This combination has less marginal utility per dollar.
D. This combination is not affordable.
Answer: D
You might also like to view...
The existence of a monopoly:
A. creates market inefficiencies. B. causes a reduction in total surplus. C. causes consumers to get less at a higher price. D. All of these statements are true.
Labor and land are substitutes. If rent goes up and the amount of labor used goes down, we can assume that the
A. output effect outweighed the substitution effect. B. the substitution effect outweighed the output effect. C. the substitution effect and the output effect canceled each other out. D. there is no way to determine the relative weights of the substitution effect and the output effect.
Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). According to this Application, over the past few years there has been a ________ increase in ________ of automobile parts from outside the United States and Canada.
A. small; imports B. large; imports C. small; exports D. large; exports
An example of a deficit item on the U.S. balance of payments is
A. the payment of a dividend by a Japanese firm to a U.S. family. B. the purchase of Chinese yuan by a U.S. firm. C. the sale of a spark plug made by a U.S. firm in Michigan to a Nissan plant in Tennessee. D. a deposit in a bank in Chicago by the government of Saudi Arabia.