Angela is currently playing five games of pool and bowling three games. At this level of consumption, her marginal utility from a game of pool is 10 and her marginal utility from bowling a game is 6. If both pool and bowling cost $1 a game, Angela should:
A. bowl more and play pool less.
B. bowl less and play pool more.
C. just go home.
D. bowl only.
Answer: B
You might also like to view...
Mark and John are 10-year-old twins who do not get along. They have opened separate lemonade stands and are competing with each other, selling lemonade on their block. Their mother observes that Mark is very good at making lemonade and John is an
excellent young salesman. She suggests they both could make more money if they worked together. John counters that two stands will always make more money than one. Who is right? Why?
If the U.S. dollar depreciates in the foreign exchange market, U.S. exports will be __________ and U.S. imports will be __________
A) relatively less expensive; relatively less expensive B) relatively less expensive; relatively more expensive C) relatively more expensive; relatively more expensive D) relatively more expensive; relatively less expensive E) unaffected; relatively less expensive
Economic stagnation coupled with high inflation is commonly called:
A. stagflation. B. inflationary stagnation. C. stagnatory growth. D. inflagnation.
A firm competing in a perfectly competitive labor market desires to maximize
A. marginal profit, not total profit. B. average profit, not marginal profit. C. total profit, not marginal profit. D. marginal profit, not average profit.