Multiple Choice
Eric is maximizing his total utility through his choices of two goods: clothes and food. His marginal utility of clothes is 60 and his marginal utility of food is 12. The price of clothes is $20. What must be the price of food?
A) 12.
B) 6.
C) 4.
D) 1.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Assume the price of Advil increases. As
Q6: If a consumer wishes to maximize satisfaction
Q7: The marginal utilities associated with the first
Q8: The term utility refers to the:<br>A) pleasure
Q9: Assume the total utilities corresponding to the
Q12: Suppose that the price of telephones decreases.
Q13: Exhibit 6-7 Marginal utility for sandwiches and
Q14: If Mr. Smith thinks the last dollar
Q15: Exhibit 6-7 Marginal utility for sandwiches and
Q198: Which of the following is the best