The price of shrimp is $10.00 per pound and the price of lobster is $15.00 per pound. The marginal utility to Mike of pound of shrimp consumed is 60 utils. If Mike maximizes his satisfaction by consuming both shrimp and lobster, we would expect the marginal utility of the last pound of lobster consumed to equal:
a. 40 utils
b. 60 utils
c. 90 utils
d. 150 utils
c
You might also like to view...
Explain the economic concept of convergence
What will be an ideal response?
What is rent seeking with respect to restricting international trade?
A) The rent on factory buildings increases if trade is restricted. B) The government avoids paying rent on buildings when importers pay the tariff. C) An attempt to capture the gains from trade by imposing a tariff D) The government's efforts to capture tariff rents E) The attempt by importers to avoid paying a tariff
A positive demand shock causes the aggregate demand curve to undergo an ______ shift.
a. anticipated rightward b. unexpected rightward c. anticipated leftward d. unexpected leftward
Assuming the economy is represented by the graph shown, if the government were to enact a partially successful expansionary fiscal policy, it would be most likely to:
A. move from equilibrium B to A. B. move from equilibrium A to B. C. cause deflation. D. cause unemployment to temporarily increase.