A rational consumer maximizes her
a. preferences.
b. marginal rate of substitution.
c. utility.
d. budget constraint.
c
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The market supply curve can be derived by
A) vertically adding the individual supplies at each quantity level. B) multiplying the price and quantity supplied at each price level. C) horizontally adding the individual supplies at each price level. D) looking at the capacity utilization in the largest firms in the industry.
Suppose Sarah owns a small company that makes wedding cakes. The accompanying table shows how Sarah's total cost varies depending on the number of wedding cakes she makes each day.Number of Cakes Per DayTotal Cost Per Day0$1001$1802$2203$3004$4005$5206$660 When Sarah produces 2 cakes per day, her average variable cost is ________.
A. $60 B. $100 C. $120 D. $110