Multiple Choice
Gonzo consumes only two things--coke and hot dogs.We can define the addition to "happiness" of consuming an additional coke as the marginal utility of coke and that for hot dogs as the marginal utility of hot dogs.The prices of coke and hot dogs are fixed and Gonzo has a limited budget.To maximize "happiness" subject to his limited budget,Gonzo should purchase coke and hot dogs so that
A) the marginal utility of coke is the same as the marginal utility of hot dogs.
B) he spends the same amount on coke as on hot dogs.
C) the addition to happiness of the last coke is the same as the addition to happiness of the last hot dog.
D) the addition to happiness per dollar spent on coke is the same as the addition to happiness per dollar spent on hot dogs.
Correct Answer:

Verified
Correct Answer:
Verified
Q42: A student taking economics,statistics,and finance has decided
Q43: A restaurant hires cooks and waiters.Cooks
Q44: Refer to the figure below,which shows marginal
Q45: A clinic uses doctors and nurses to
Q46: A manager in charge of new
Q48: If profits depend on both how much
Q49: A computer services center has a problem
Q50: A local charity has decided to
Q51: The optimal level of pollution reduction is
Q52: A politician,who wants to receive the maximum