Multiple Choice
When Homer has 5 doughnuts,his marginal value is 15¢ per doughnut.We can conclude that Homer
A) places a value of 3¢ on each doughnut he owns.
B) needs to purchase more than 5 doughnuts to reach his optimum.
C) receives 75¢ worth of total satisfaction from his 5 doughnuts.
D) would refuse to pay more than 15¢ for a sixth doughnut.
Correct Answer:
Verified
Correct Answer:
Verified
Q35: The cardinal utility approach has exactly the
Q36: Budget Lines<br><br>The following questions refer to the
Q37: The budget line is steep when X
Q38: Goods X and Y<br><br>For the following questions,
Q39: A utility maximizing person gets marginal utility
Q41: Goods X and Y<br><br>For the following questions,
Q42: An indifference curve is a construct used
Q43: Comparing a market basket A to other
Q44: A utility maximizing person has a utility
Q45: Along a convex indifference curve,the marginal value