A utility maximizing person gets marginal utility from consuming their last orange and apple of 5 and 10 respectively. If apples cost 90 cents a piece, the oranges must cost
a. $0.45 a piece.
b. $0.90 a piece.
c. $1.80 a piece.
d. $2.70 a piece.
c. $1.80 a piece.
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In an economy open to international trade where the interest rate at which saving and investment would be equal is ________ the world real interest rate ________
A) above; a trade surplus ensues B) below; a trade deficit ensues C) above; there is a net capital outflow D) below; there is a net capital inflow E) none of the above
By 1914 the American economy had transformed into an agricultural giant
Indicate whether the statement is true or false
The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
a. selling short. b. buying long. c. arbitrage. d. a tariff.
The natural rate of unemployment:
A) is a constant. B) is the average of the unemployment rate in a country over time. C) is determined by adding the unemployment rates in all countries and then dividing it by the number of countries. D) is always lesser than the level of cyclical unemployment in an economy.