Multiple Choice
The price of hamburgers is $2 and the price of brownies is $4. The consumer has $16 of income. The consumer is purchasing 3 hamburgers and receiving 20 utils for the last hamburger. He is also purchasing 2 brownies and receiving 40 utils for the last brownie. This set of goods
A) is an optimum since the entire income is spent and the marginal utility per dollar spent is the same for the last unit of each good.
B) is an optimum since the entire income is spent and total utility is maximized.
C) is not an optimum because the marginal utility per dollar spent is greater for hamburgers than for brownies.
D) is not an optimum because the consumer has not spent all of his money.
Correct Answer:

Verified
Correct Answer:
Verified
Q210: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Given the above
Q211: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -According to the
Q212: The diamond-water paradox illustrates the idea that
Q213: The change in satisfaction derived when an
Q214: John is currently spending all of his
Q216: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q217: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the
Q218: A consumer's optimum is found when<br>A) the
Q219: The price of a hotdog is $1,
Q220: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -The price of