Frannie spends her income on rice and beans. At her optimum, Frannie's
a. utility from consuming rice is equal to her utility from consuming beams.
b. marginal utility of rice is equal to her marginal utility of beans.
c. marginal utility per dollar spent on rice equals her marginal utility per dollar spent on beans.
d. marginal rate of substitution is equal to 1.
c
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The standard cut-off for cost per QALY used by most governmental decision makers is set in terms of a multiple of national per capita income. The value of the threshold is usually _____ percent of national per capita income.
a. 250 b. 200 c. 300 d. 100 e. 150
The budget line shows
a. different levels of consumption associated with different levels of incomes. b. the affordable combinations of goods and services you can buy with your income. c. different levels of inputs needed to produce specific level of output. d. none of the above.