subject
Business, 20.03.2020 23:49 bshreve

Mark consumes only cookies and books. At his current consumption bundle, his marginal utility from books is 6 and from cookies is 5. Each book costs $10.00 and each cookie costs $2.00. Is he maximizing his utility? Explain. If he is not, then how can he increase his utility while keeping his total expenditure constant? Mark is A. not maximizing utility because MRS equals negative StartFraction Upper U Subscript Upper B Over Upper U Subscript Upper C EndFraction less thannegative StartFraction p Subscript Upper B Over p Subscript Upper C EndFraction . B. maximizing utility because MRS equals negative StartFraction Upper U Subscript Upper B Over Upper U Subscript Upper C EndFraction . C. maximizing utility because MRS equals negative StartFraction Upper U Subscript Upper B Over Upper U Subscript Upper C EndFraction equalsnegative StartFraction p Subscript Upper B Over p Subscript Upper C EndFraction . D. not maximizing utility because StartFraction Upper U Subscript Upper B Over p Subscript Upper B EndFraction equalsStartFraction Upper U Subscript Upper C Over p Subscript Upper C EndFraction . E. not maximizing utility because MRS equals negative StartFraction Upper U Subscript Upper B Over Upper U Subscript Upper C EndFraction greater thannegative StartFraction p Subscript Upper B Over p Subscript Upper C EndFraction . Click to select your answer and then click Check Answer.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 18:20
The sticky-price theory asserts that the output prices of some goods and services adjust slowly to changes in the price level. suppose firms announce the prices for their products in advance, based on an expected price level of 100 for the coming year. many of the firms sell their goods through catalogs and face high costs of reprinting if they change prices. the actual price level turns out to be 110. faced with high menu costs, the firms that rely on catalog sales choose not to adjust their prices. sales from catalogs will
Answers: 3
question
Business, 21.06.2019 21:10
Auniversity spent $1.8 million to install solar panels atop a parking garage. these panels will have a capacity of 400 kilowatts (kw) and have a life expectancy of 20 years. suppose that the discount rate is 20%, that electricity can be purchased at $0.10 per kilowatt-hour (kwh), and that the marginal cost of electricity production using the solar panels is zero. hint: it may be easier to think of the present value of operating the solar panels for 1 hour per year first. approximately how many hours per year will the solar panels need to operate to enable this project to break even? a. a.3,696.48 b.14,785.92 c.9,241.20 if the solar panels can operate only for 8,317 hours a year at maximum, the project (would/would not)break even?
Answers: 1
question
Business, 21.06.2019 23:20
Which feature transfers a slide show into a word-processing document?
Answers: 2
question
Business, 22.06.2019 01:00
Which type of data is generally stored in different file formats, such as text files, spreadsheets, and so on?
Answers: 3
You know the right answer?
Mark consumes only cookies and books. At his current consumption bundle, his marginal utility from b...
Questions
question
History, 08.12.2020 01:10
question
Mathematics, 08.12.2020 01:10
question
History, 08.12.2020 01:10
question
English, 08.12.2020 01:10
question
English, 08.12.2020 01:10
question
History, 08.12.2020 01:10
Questions on the website: 13722367