James has a utility of wealth schedule in the above table. He is offered a job selling video games at Games Galore. James' compensation depends on how much he sells. In a poor sales period, a salesperson makes 100 per month.
In a good sales period, a salesperson makes 600 per month. James is told by the manager that, in any given month, there is a 25 percent chance of a poor sales period and a 75 percent chance of a good sales period. What is James' expected utility from taking this job? A) 100
B) 150
C) 175
D) 200
Ques. 2The above table gives some production and cost information for Flaming Fernando's, a restaurant that sells Fiery Frijoles. Between what two levels of output does the marginal cost of producing Fiery Frijoles first begin to rise?
A) 0 and 1000
B) 1000 and 3000
C) 3000 and 4000
D) 4000 and 4500
Ques. 3Lizzie's budget line is shown in the figure above. The slope of the budget line is ________ cookies per magazine.
A) 2
B) -2
C) 0.5
D) -0.5
Ques. 4The table above gives Jane's total utility from magazines and CDs. The price of a magazine is 4 and the price of a CD is 10. What is the marginal utility per dollar from CDs when the sixth CD is purchased?
A) 40 units
B) 30 units
C) 15 units
D) 5 units
Ques. 5The figure above shows the market for umbrellas in Sunville. When the market for umbrellas in Sunville is in equilibrium, what is the total surplus?
A) 0
B) 12,000
C) 24,000
D) 16,000
Quick Reply
