Tom spends 20 a month on CDs and magazines. The price of a CD is 6 and the price of a magazine is 4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers.
A) the same as
B) 1/2
C) 20 times
D) 1 1/2 times
Ques. 2An indifference curve shows combinations of goods ________.
A) which the consumer prefers equally
B) that are affordable
C) that are inside or on the budget line
D) that have the same relative price
Ques. 3The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. An increase in the wage rate for labor leads to
A) an increase in the quantity of labor demanded.
B) a decrease in the quantity of labor demanded.
C) an increase in the demand for labor.
D) a decrease in the demand for labor.
Ques. 4In the figure above, assuming that the firm does not shut down, the firm will produce
A) fewer than 19 units.
B) 20 units.
C) 30 units.
D) 40 units.
Ques. 5Sue's Surfboards is the sole renter of surfboards on Big Wave Island. Sues demand and marginal revenue curves are illustrated in the figure above. Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is
A) 300.
B) 225.
C) 150.
D) 10.
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