This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.BundleNumber of popsiclesUtility from popsiclesNumber of ice cream conesUtility from ice cream conesA1070000B87201500C66502700D45503750E24004760F005760Considering the information in the table shown, if Jack decides to consume bundle D, we can conclude that Jack:
A. could consume more of both goods.
B. still has money left to spend.
C. is not maximizing his utility.
D. All of these are true.
Answer: C
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The figure above illustrates the problem of overcrowding and external costs experienced during the summer months in the state park
If the market is unregulated, in equilibrium the external cost of visiting the state park is given by the distance between A) points H and G. B) points I and F. C) points F and G. D) points G and K.
Bella can produce either a combination of 60 silk roses and 80 silk leaves or a combination of 70 silk roses and 55 silk leaves. If she now produces 60 silk roses and 80 silk leaves, what is the opportunity cost of producing an additional 10 silk roses?
A) 2.5 silk leaves B) 10 silk leaves C) 25 silk leaves D) 55 silk leaves
Refer to Figure 14.1. The income effect of the wage increase on the amount of hours of leisure is:
A) L0 to L2. B) L0 to L1. C) L1 to L2. D) L2 to L1. E) none of the above
Refer to the graph shown. To maximize profit, the monopolistically competitive firm represented in this graph will produce:
A. Q1 and set price equal to P4. B. Q1 and set price equal to P3. C. Q2 and set price equal to P2. D. Q1 and set price equal to P1.