Answer the following statement(s) true (T) or false (F)
1. A utility maximizing person gets marginal utility from consuming their last pencil and pen of 4 and 10 respectively. If pencils cost 10 cents a piece, the pens must cost 25 cents a piece.
2. A utility maximizing person gets marginal utility of 20 from consuming their last piece of bread and of 10 from consuming their last glass of milk. If a piece of bread costs 5 cents, then a glass of milk must cost 20 cents.
3. When a consumer spends all of the income, it must be true that they are maximizing utility.
1. True
2. False
3. False
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You consume only steak and lobster. Your income effect from a drop in the price of lobster is measured by a movement along your indifference curve between steak and lobster
Indicate whether the statement is true or false
Define “supply.”
Please provide the best answer for the statement.
The "bail-out" money that went to giant financial institutions like Citibank and Goldman Sachs, along with General Motors and Chrysler during the Financial Crisis and the Great Recession, came from the:
A. American Recovery and Reinvestment Act B. Troubled Assets Relief Program C. Primary Dealer Credit Facility D. Term Securities Lending Facility
Product differentiation:
a. refers to the attempt of firms to make their products look like those of the other firms in the industry. b. refers to the attempt of firms to make real or apparent differences in essentially substitutable products look different in the minds of the consumers. c. refers to the advantage big firms have in research and development. d. is a common characteristic of a perfectly competitive market structure. e. is only employed in a monopoly market structure.