Bill currently uses his entire budget to purchase 5 cans of Pepsi and 3 hamburgers per week. The price of Pepsi is $1 per can, the price of a hamburger is $2, Bill's marginal utility from Pepsi is 4, and his marginal utility from hamburgers is 6
Bill could increase his utility by: A) increasing Pepsi consumption and reducing hamburger consumption.
B) increasing hamburger consumption and reducing Pepsi consumption.
C) maintaining his current consumption choices.
D) We do not have enough information to answer this question.
A
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Marty's Seafood Company sells fish in a perfectly competitive market. The market price is currently $3 per pound. At its current level of production, long-run average cost at Marty's Seafood Company is $2.75 per pound
If Marty's Seafood Company is representative of firms in the industry, is this industry in equilibrium? Explain.
The finite nature of the economy's resource base:
a. will be solved if only we would learn to conserve. b. is only a problem in developing countries. c. will be solved as technology advances. d. will always be with us.
If the euro–pound exchange rate increased from €1.1 per pound in 2009 to €1.27 per pound in 2012, it implies a depreciation in the value of the pound from 2009 to 2012
a. True b. False Indicate whether the statement is true or false
Monetary policy:
A. is the use of tax increases or cuts designed to change the amount of money available for spending. B. is the use of audits to make certain that banks follow bank policy. C. is the use of money and credit controls to influence macroeconomic activity. D. exists only in textbooks and has no applicability to the "real world." Monetary policy is the use of money and credit controls to influence macroeconomic activity.