Refer to Figure 6.16. Why was Jason NOT maximizing his utility at point C?
What will be an ideal response?
Answer: his marginal utility per dollar spent on the last sandwich is greater than his marginal utility spend on his last hot dog
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Refer to the table below. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. If she does not sell a cake the day she makes it, she sells it as day-old cake for $10. What is her expected marginal cost of holding the 22nd cake in inventory?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) $0.40
B) $1.20
C) $0.80
D) $2.00
Which of the following commodities can be considered as an inferior good?
a. Dwelling in a small apartment located in a suburb b. Washing clothes in a washer at home c. Eating out at an upscale restaurant d. Spending vacations at exotic locations
The principle of comparative advantage states that a country should specialize in the production of those goods that have the highest opportunity costs
a. True b. False Indicate whether the statement is true or false
The cross price elasticity for low mpg (miles per gallon; gas mileage) cars for a change in the price of gasoline is likely to be
A. zero. B. negative. C. positive and greater than 1. D. positive and less than 1.