If Valerie purchases ankle socks at $5 and gets 25 units of marginal utility from the last unit, and bandanas at $3 and gets 12 units of marginal utility from the last bandana purchased, she
A) is maximizing total utility and does not want to change her consumption of ankle socks or bandanas.
B) wants to consume more ankle socks and fewer bandanas.
C) wants to consume more bandanas and fewer ankle socks.
D) wants to consume less of both ankle sock and bandanas.
Answer: B
You might also like to view...
Which of the following statements correctly describes the distinction between technology and technological change?
A) Technology refers to the processes used by a firm to transform inputs into output of goods and services while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs. B) Technology refers to the ability of a firm to increase its maximum output from a given quantity of inputs and technological change is the process by which the firm achieves this productivity gain. C) Technology is product-centered; its refers to developing new products with limited resources while technological change is process-centered in that it focuses on developing new production techniques. D) Technology involves research and development while technological change involves the use of more efficient machinery.
Refer to the table below. Based on the data provided, it can be deduced that:
The table below shows labor-productivity figures in two countries facing constant costs:
A. Country A can produce more meat and houses than country B
B. Country A has a comparative advantage in producing houses
C. Country B has the absolute advantage in producing houses
D. Country B has a comparative advantage in producing houses