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Question
Table 10-2| Quantity of Soup (cups) | Total Utility | Quantity of Sandwiches | Total Utility |
| 1 | 40 | 1 | 45 |
| 2 | 60 | 2 | 75 |
| 3 | 72 | 3 | 102 |
| 4 | 82 | 4 | 120 |
| 5 | 88 | 5 | 135 |
| 6 | 90 | 6 | 145 |
Refer to Table 10-2. Suppose Keira's income increases from $18 to $23 but prices have not changed. What is her utility maximizing bundle now?
A) 6 cups of soup and 5 sandwiches
B) 4 cups of soup and 5 sandwiches
C) 5 cups of soup and 4 sandwiches
D) 5 cups of soup and 5 sandwiches
Answer
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Related questions
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Suppose two countries use different combinations of inputs, such as labor and capital, to produce the same product. This implies all of the following except that
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B) the relative input prices.
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B) the level of long-run average cost at different scales of operation.
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B) is equivalent to minimizing cost for a given level of output.
C) necessitates using only relatively low-priced inputs.
D) will maximize total revenue.
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D) $41,500
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Which of the following would be categorized as an opportunity cost?
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b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only
B) a and c only
C) b and c only
D) all of the above