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Question
Pencils sell for 10 cents and pens sell for 50 cents. Suppose Jack, whose preferences satisfy all of the basic assumptions, buys 5 pens and one pencil each semester. With this consumption bundle, his MRS of pencils for pens is 3. Which of the following is true?A) Jack could increase his utility by buying more pens and fewer pencils.
B) Jack could increase his utility by buying more pencils and fewer pens.
C) Jack could increase his utility by buying more pencils and more pens.
D) Jack could increase his utility by buying fewer pencils and fewer pens.
E) Jack is at a corner solution and is maximizing his utility.
Answer
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Related questions
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B) NPV is understated
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Q:
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Q:
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Q:
The first term in an NPV calculation is usually
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Q:
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Q:
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Q:
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Q:
Scenario 14.4:
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L = PL -5 MEL = 2L + 5
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Q:
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Q:
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Use the following statements to answer this question:
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Q:
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Q:
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Q:
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Q:
An increase in technology that enhances labor productivity will likely result in:
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Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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Q:
The marginal revenue product can be expressed as the
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B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.